Voyager Digital, a company that was once having trouble and is now going through bankruptcy, announced an incredible financial victory: it had recovered an amazing $484.35 million from settlements with well-known companies FTX, Three Arrows Capital (3AC), and Directors and Officers (D&O) insurance.
In a full report given to the US Bankruptcy Court for the Southern District of New York on April 10, Voyager said that it had made this big recovery as part of its plan to give assets back to creditors after the company went bankrupt.
FTX Sparks $450M Recovery
The deal with FTX is where most of the funds that Voyager got back—about $450 million—mostly comes from. This is a significant 25% of Voyager’s original creditor claims. There are plans to give the funds to different people soon.
Voyager has also won a claim of about $675 million in its ongoing legal proceedings with Three Arrows Capital. The company’s share of the initial distribution is $20.43 million.
A separate mediation involving D&O insurance is likely to give at least $14.35 million to Voyager’s creditors. This is another step toward helping the company’s stakeholders with their financial problems.
Despite these changes, Voyager is having trouble with logistics, especially when it comes to the 270,000 uncashed checks worth a total of $17 million, with many of them worth less than $25. The company has given you until April 20, 2024, to cash these checks. If you don’t, they will be considered lost and void.
Voyager is also dealing with the effects of a data breach. Investigations are still going on to find out where the breach came from and what all the effects are. This makes the bankruptcy procedures more complicated.
In July 2022, during the crypto credit crisis as a whole, Voyager started to go bankrupt, which led to its Chapter 11 filing. After Binance pulled out, the court accepted Voyager’s plan to file for bankruptcy on May 17, 2023.US plans to buy assets from Voyager for $1 billion on April 25.
Also, in October 2023, the Commodity Futures Trading Commission (CFTC) charged Voyager’s co-founder Stephen Ehrlich with fraud and failing to register with the agency. The CFTC said Ehrlich and Voyager lied to clients about the firm’s financial stability as it was about to fail.
When Voyager filed for bankruptcy, it said it owed between $1 billion and $10 billion, which shows how bad its financial situation was and why it needed bankruptcy protection.
