Crypto Firm Voyager Secures $484M to Repay Creditors

Voyager Digital has made impressive strides in compensating creditors post-bankruptcy.

Voyager Digital has made significant progress in compensating creditors after declaring bankruptcy. A noteworthy accomplishment in terms of the firm’s financial recovery and creditor payments is the realization of $484.35 million from settlements with FTX, Three Arrows Capital (3AC), and Directors and Officers (D&O) insurance claims.

Voyager Recovery Effort

This constitutes a substantial milestone for the company. Voyager Digital has been able to establish a recovery fund through a multi-pronged procedure that has relied not only on various sources but also on judicial measures.

One of the agreements with the bitcoin exchange FTX is responsible for the majority of the recovery, which amounts to approximately $450 million.

This settlement, which includes interest, accounts for around 25 percent of the total claims that Voyager’s creditors have made, and it is anticipated that it will be delivered in the not-too-distant future.

Additional recoveries to the recovery fund also include a significant portion of the ongoing procedures in proceedings against Three Arrows Capital (3AC), together amounting to approximately $675 million. The recovery fund also includes these recoveries.

As a result of this, Voyager has already been given $20.43 million as its share of the revenues from the liquidation of assets, and it is anticipated that it will receive more payments when assets are liquidated and lawsuit recoveries are experienced over the course of time.

A minimum of $14.35 million has been pledged to the advantage of the creditor as part of a mediation settlement with D&O Insurance, which has strengthened the creditor’s funds.

Voyager is grappling with various operational challenges as it navigates the financial recovery process, including a significant amount of uncashed checks.

Approximately 270,000 checks, totaling approximately $17 million, remained uncashed. The majority of these checks were for properties that were worth less than $25.

Voyager has set a deadline of April 20, 2024, beyond which these checks will be considered invalid as unclaimed, demonstrating a proactive approach to resolving this logistical issue.

The company is experiencing further difficulties as a result of the aftermath of a data breach that exposed information about its creditors. In light of this, ongoing investigations with cybersecurity specialists from outside provide assistance in identifying the breach’s source and full breadth, as well as early remediation of vulnerabilities of this kind.