- Voyager Digital is proceeding with its direct distribution model.
- The team has unveiled compensation plans for customers.
- The offer significantly pales compared to what they would have gotten with the Binance.US deal.
As bankruptcy proceedings continue, Voyager Digital customers have gone almost a year without access to funds placed on the once highly promoted crypto trading venue.
After two failed deals to sell its assets to FTX.US and, most recently, with Binance.US, Voyager has unveiled initial recovery plans per its proposed direct distribution model.
Customers Offered Initial Recovery of 35.72%
In a Monday, May 8, blog post, the Voyager restructuring team disclosed that customers would receive 35.72% of their holdings with the firm as part of an initial recovery plan filed with the bankruptcy court on Friday, May 5.
While Voyager claims that its current assets worth $1.334 billion can cover up to 75.68% of customer holdings, the release notes that an approximate $445 million is in dispute with FTX and Alameda. The firm disclosed holding back $259.6 million for things like winding down costs and tax claims.
Sponsored
The team revealed that there would be a 30-day window for crypto withdrawals, after which all other payments will be made in cash after liquidating customer accounts. Voyager named 38 cryptocurrencies that will not be supported for transfer, including AVAX, ALGO, LUNA, and LUNC, which will instead be liquidated and made available for withdrawal in USDC.
"Once the plan is effective, we will provide more information on the next steps, including when the 30-day window will be opened," the Voyager team asserted.
The figure is significantly lower than customers had previously anticipated as part of the failed Binance.US acquisition deal.
Failed Deals
The Binance.US deal would have seen users receive 73% of their holdings from the assets of Voyager Digital, however Binance pulled out at the last minute in April.
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Binance.US’s decision to rescind its offer blindsided all involved, as the court had just approved the crypto exchange’s planned purchase of Voyager assets, despite significant pushback from regulators.
The crypto exchange cited the growing regulatory hostility in the United States for its decision to terminate the agreement in a Twitter statement.
This was not the first time a Voyager deal fell through. FTX.US had initially received approval to acquire the failed firm’s assets, but the deal collapsed following the formerly leading exchange’s rapid implosion, ending in FTX filing for bankruptcy.
On the Flipside
- The plan to offer users 35.72% of their claim is not yet in effect.
- This may be the only compensation customers receive if Voyager loses the $445 million dispute with FTX/Alameda.
Why You Should Care
Voyager was amongst the first crypto firms to bite the dust during the bear market cycle of 2022. Per its latest update, approximately 1,763 account holders are waiting in line to regain control of their funds.
Read to learn more about the fallout of the Binance.US Voyager deal:
Binance.US-Voyager Deal Breakdown Leads to $10M Escrow Deposit Dispute
Binance recently attracted FTX comparisons; read more:
Binance Draws FTX Comparisons After Pausing Bitcoin Withdrawals
