2023-06-16 20:10:11
© Reuters Voyager Digital to release customer withdrawals in June
CriptoFácil – process presented on Wednesday (14), the cryptocurrency brokerage is preparing to reopen its application.
As a result, the reopening will allow customers to withdraw their funds. The plan follows the approval that Voyager received in May, as reported by CriptoFácil.
Withdrawals may come in June
According to the court filing, the administrator of Voyager’s bankruptcy plan, Paul Hage, said the company updated its application on Thursday. With this update, the company’s customers will already be able to see the forms and values of their initial distribution.
However, Voyager is not yet expected to process all payments right away. In this sense, Hage explained that the estimated withdrawal period will be between June 20 and July 5.
Under the bankruptcy plan approved in court on May 17, Voyager customers will initially receive 35.72% of what they are owed. Hage also pointed out that Voyager has $445 million in the hands of Alameda Research and is trying to recover those amounts.
Therefore, if it succeeds in this, Voyager can make available the equivalent of more than R$ 2 billion to reinforce payments. But that is not expected to occur until mid-September 2023, when the funds case is expected to go to trial.
By contrast, the bankruptcy plan trustee also noted that hedge fund Three Arrows Capital (3AC) still owes Voyager $650 million. The fund is one of the biggest creditors, but Voyager is unlikely to recoup the amount in full.
Focus on cash back
With payments to customers underway, the Voyager bankruptcy team’s primary focus will shift to recovering additional assets. The exchange will then distribute these assets as payment to customers, from lawsuits and asset sales.
According to Hage, if that happens it will come in the form of an additional distribution. This is because the amounts related to the initial payments are already separated.
Since filing for bankruptcy last July, Voyager has witnessed two failed acquisitions. First, Sam Bankman-Fried’s FTX collapsed, followed by Binance’s US affiliate (Binance.US) pulling out of the $1 billion deal.
As a result, the platform had to stand on its own two feet and draw up the recovery plan for customers. Excess payments will go to a fund that intends to repay the other 64% that Voyager still owes its customers since it stopped withdrawals in May.
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