According to the Voyager Official Committee of Unsecured Creditors (UCC), funds stuck on the platform of the bankrupt crypto broker Voyager Digital may start returning to creditors in “the next few weeks.”
3/ If no objections are filed, Voyager intends to go “effective” with the plan at that time. If an objection is filed, the Court will hold a hearing to consider the objection before the plan can go effective.
— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) May 4, 2023
The UCC tweeted on May 4th that the liquidation procedures of the now-defunct crypto firm are in their final stages, and they hope initial distributions to start in the next few weeks.”
Ten days ago, Binance.US abandoned its initial agreement to purchase $1.02 billion of Voyager’s assets. The crypto exchange cited “the hostile and uncertain regulatory climate in the United States” as the reason for their withdrawal.
However, Voyager’s restructuring plan includes a “toggle option” that allows the firm to pursue self-liquidation, permitting the bankrupt broker to distribute cash and crypto to customers directly via the Voyager platform.
1/ Around 2 hours ago, https://t.co/5sjac1H4CW purported to terminate the asset purchase agreement with Voyager. The Committee is incredibly disappointed with this decision and is investigating potential claims against https://t.co/5sjac1H4CW.
— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) April 25, 2023
The UCC was disappointed by Binance.US’ change of heart, and they have expressed their intention to investigate potential claims against the crypto exchange. Voyager must file the liquidation procedures with the U.S. Bankruptcy Court for the Southern District of New York, and parties have 10 days to file any objections to the liquidation procedures. If no objections are filed within the next 10 days, Voyager will “go ‘effective’ with the plan.”
Nonetheless, if an objection is filed, the court will hold a hearing to consider the objection before the liquidation plan can proceed. An overwhelming majority, 97%, of the 61,300 Voyager customers voting on the court’s restructuring plan voted in favour of it. However, they assumed that Binance.US would acquire the stranded assets at the time of voting.