Bankrupt exchange Voyager Digital to shut shop after failed deals, details inside
- Voyager Digital to self-liquidate its assets after failing to reach a deal.
- Voyager’s customers will receive an initial recovery of 36% of their crypto holdings.
According to Voyager Digital’s lawyers, the bankrupt crypto lender will self-liquidate its assets and cease operations after failing to reach an agreement on a sale to either FTX US or Binance.US.
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The announcement, shared in a court filing on 5 May, comes just ten days after Binance.US abruptly backed out of a $1 billion deal to buy Voyager Digital’s assets when the US government intervened to prohibit part of it.
Prior to the agreement with Binance.US, the crypto lender made a similar offer to FTX. When FTX went bankrupt alongside Voyager in November, the first contract was cancelled.
Voyager stated in a filing that a number of digital assets on the platform that cannot be removed will be liquidated and returned to its users. These assets include major cryptocurrencies such as Algorand [ALGO], Celo [CELO] and Avalanche [AVAX].
Will customers receive their funds?
The filing states that Voyager’s customers will receive an initial recovery of 36% of their crypto holdings.
This is an appallingly low recovery rate when compared to estimates of their recovery rate of 72%-73% if either of the acquisition plans were successful, as well as recovery estimates for creditors of other bankrupt crypto platforms.
Celsius’ creditors, for example, are expected to collect approximately 70% of their shares.
According to the filing, the recovery rate could increase if defunct crypto trading firm Alameda Research’s quest to recoup $446 million from Voyager’s estate fails.
In addition to reserving $446 million of the estate’s assets for the Alameda suit, Voyager’s attorneys are retaining an additional $259.6 million for litigation fees, administrative claims, and various other holdbacks.
Creditors with any of the 67 “supported” tokens, including BTC and ETH, will be able to withdraw the maximum percentage of their crypto directly. Voyager will liquidate any of the 38 “unsupported tokens,” including SOL and ALGO, and pay customers back in USDC, a stablecoin.