Benzinga - Cryptocurrency exchange Voyager Digital (OTC: VYGVQ) is sharing its initial recovery plan with customers after filing for Chapter 11 bankruptcy.
In an email sent to customers on Tuesday, the company detailed the procedures it intends to execute for the company’s Chapter 11 plan and how initial recoveries in crypto or cash would be provided to customers through the Voyager app.
According to the email, Voyager's estate has $1.334 billion in assets, which equates to 75.68% of the aggregate value of customer claims against the company. However, customers will receive an initial recovery estimated to be 35.72% of their claim amount due to certain holdbacks. The actual recovery percentage may materially differ.
The company is also involved in the resolution of the FTX/Alameda preference claim dispute and any additional claims brought by the Voyager Plan Administrator against third parties, as well as any recovery by the Voyager estate as a creditor in the Three Arrows Capital liquidation. Successful outcomes in these matters could result in customers receiving additional recoveries in the future.
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Customers will have two options for receiving their initial recovery: either in crypto through the Voyager platform or in U.S. dollars after the 30-day crypto withdrawal period has ended. To receive the initial recovery in crypto, customers will have to log in to the Voyager app once it is made available and transfer supported crypto from their Voyager account to a designated wallet address within 30 days.
Voyager's supported coins include Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Chainlink (LINK), Polkadot (DOT), Cardano (ADA), and many others. However, holders of certain unsupported crypto coins and Voyager Token (VGX) will receive a pro rata amount of USD Coin (USDC) in lieu of those specific coins.
Customers who prefer to receive their initial recovery solely in U.S. dollars do not need to take any action during the 30-day window. Then, accounts will be liquidated, and they will receive U.S. dollars by either check or possibly ACH withdrawal.
Voyager is also pursuing its claims against Three Arrows Capital (3AC), and if the company receives a recovery on account of claims against 3AC, customers may receive additional recoveries in cash or crypto in the future.
The Voyager app and website will be operational for a period of 30 days, during which time customers will be able to transfer their initial crypto recoveries off the platform to a designated wallet address. If customers do not log in during this time to transfer their initial crypto recoveries off the platform, it will be converted to U.S. dollars and provided after the 30-day crypto withdrawal window closes.
As part of the agreement, Binance.US, which was initially involved in the asset purchase agreement with Voyager, is required to destroy all customer information it has received and permanently close and remove any accounts established with Voyager customer information, as the transaction with Binance.US did not close.
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Disclosure: Benzinga CEO Jason Raznick is a member of the unsecured creditor committee in the Voyager Digital bankruptcy case.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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