Key takeaways:
- Voyager Digital intends to liquidate its assets and cease operations ten days after Binance.US withdrew from the $1 billion transaction.
- Binance.US withdrew from the agreement, citing the “hostile and uncertain regulatory climate” as the reason.
In an application on Friday, Voyager stated that a number of inaccessible digital assets on the site would be liquidated and given back to users. Important digital currencies like Algorand (ALGO), Celo (CELO), and Avalanche (AVAX) are among them.
The Voyager Official Committee of Unsecured Creditors (UCC) tweeted that the dissolved company was nearing the end of the bankruptcy liquidation process. Initial deliveries should start within the next two weeks, the UCC “hopes.”
After the liquidation, holders of unsupported tokens like Solana would receive repayment in USDC.
When compared to the anticipated 70% that Celsius creditors will receive, the recovery percentage of 36% is quite low. In the event that the agreement with FTX or Binance.US was successful, the creditors would have gotten back more than 70% of their assets.
The recovery percentage might increase if Alameda Research, a defunct cryptocurrency trading company, is unsuccessful in its attempt to retrieve $446 million from Voyager’s estate. Voyager’s lawyers are holding back an extra $259.6 million for litigation costs, administrative claims, and various other holdbacks in addition to setting aside $446 million of the estate’s assets for the Alameda lawsuit.
Fortunately, a “toggle option” in Voyager’s restructure plan enables the company to pursue self-liquidation in the event that Binance.US decides to back out of the arrangement. This enables the bankrupt broker to give customers direct access to cash and cryptocurrency via the Voyager platform.
Creditors who have any of the 67 “supported” tokens, such as BTC and ETH, locked on the platform will be able to cash out the permitted portion of their cryptocurrency right away. Any of the 38 “unsupported tokens,” including SOL and ALGO, will be sold by Oyager, and buyers will receive refunds in the stablecoin USDC.
By May 15 at 4 p.m (EST), concerns to the anticipated liquidation process must be submitted to the Southern District of New York (SDNY) of the United States Bankruptcy Court.
