Voyager Digital plans to liquidate assets and cool down after Crushed Dreams sale

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Voyager Digital lawyers say the bankrupt crypto lender will self-liquidate its assets and cease operations after failing to reach an agreement on a sale to FTX US or Binance.US.

The announcement, made in a court filing on Friday, comes 10 days after Binance US abruptly pulled out of a billion dollar deal to buy assets from Voyager Digitals following US government intervention. to block part of it. Prior to the deal with Binance US, the crypto lender had a similar offer to sell to FTX. The first deal was canceled when FTX followed Voyager into bankruptcy last November.

According to the filing, Voyagers customers will receive an initial recovery of 36% of their crypto holdings, an extremely low recovery rate compared to both estimates of their recovery rate of 72-73% if either acquisition plan succeeded, as well as recovery estimates for creditors of other failed crypto platforms. Celsius creditors, for example, will receive about 70% of their holdings.

The recovery rate could increase, according to the filing, if defunct cryptocurrency trading firm Alameda Researchs tries to recover $446 million from Voyagers’ estate fails. In addition to setting aside $446 million of the estate’s assets for the Alameda lawsuit, Voyagers’ attorneys are also withholding an additional $259.6 million for litigation costs, administrative claims and various other holdbacks.

Creditors who have any of the 67 supported tokens, including BTC and ETH, locked on the platform will be able to directly withdraw the authorized percentage of their crypto. For those with any of the 38 unsupported tokens, including SOL and ALGO, Voyager will liquidate everything and refund customers with USDC, a stablecoin.

Objections to the planned liquidation process must be submitted to the U.S. Bankruptcy Court for the Southern District of New York (SDNY) by May 15 at 4 p.m. EST.

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