Key Takeaways
Voyager Digital secures $484 million through settlements, mainly with FTX, to repay creditors;
D&O insurance mediation and the ongoing litigation with Three Arrows Capital also contribute to the repayment fund;
Voyager deals with 270,000 uncashed checks worth $17M, setting an April 20 deadline for cashing.
Voyager Digital, a crypto firm that declared bankruptcy in July 2022, has successfully gathered $484 million to pay back its creditors.
Most of this sum, around $450 million, comes from a settlement with the now-collapsed crypto exchange FTX.
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An additional $14.35 million comes from a settlement in the Directors and Officers insurance mediation.
As a member of the Three Arrows Capital (3AC) creditors’ committee, Voyager also anticipates receiving an initial $20.43 million from the fund’s litigation process out of a total claim pool of roughly $675 million.
Voyager’s restructuring plan was approved in May 2023, promising customers to recover at least 35% of their claims.
Despite the progress in client repayments, Voyager still faces operational issues, such as managing about 270,000 uncashed checks, mostly for amounts under $25, totaling up to $17 million. The firm has set an April 20 deadline to cash these checks.
Despite these challenges, Voyager remains committed to meeting its obligations to creditors, highlighting a determined yet optimistic post-bankruptcy journey.
The company’s difficulties extend to its partners as well. A few months ago, a class-action lawsuit targeted the NBA due to allegations of negligence in approving marketing deals with Voyager Digital, which has led to investor losses exceeding $4.2 billion.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
