Voyager’s Bankruptcy Plan: What It Means for Creditors and Executives

Understanding Voyager’s Bankruptcy Approval

On May 17, a New York court gave the green light to Voyager’s bankruptcy plan, which has certainly sent ripples through the crypto community. This approval followed the court’s decision a day earlier by Judge Michael Wiles, effectively initiating the process of liquidating Voyager’s assets to satisfy its creditors. It’s like a garage sale, but instead of unwanted trinkets, we’re talking about a whopping $1.33 billion in assets!

The Bumpy Road to Liquidation

The journey for Voyager has been rocky, to say the least. Just when they thought their salvation lay in a deal with Binance.US to sell off around $1 billion in assets, that plan fell through quicker than a poorly handled digital asset. The deal was struck down on April 25, leading Voyager to propose their third bankruptcy plan on May 5, which was ultimately approved. Talk about a rollercoaster ride!

What Happens Next?

Now it’s time for the grand liquidation, where Voyager will distribute its assets among the creditors. Customers should brace themselves for an initial recovery of about 35.72% of their claims. Hopefully, that means more than a generous cup of ramen at the end of a long day!

Where’s the Accountability?

Amidst all this chaos, eyebrows have raised over the fact that Voyager’s executives and lawyers continue to rake in the bucks while the ship is sinking. One particularly frustrated Twitter user asked, “In what other industry can you fail at literally everything & still come out with millions?” Good question! Perhaps it’s time to rethink how we hold decision-makers accountable for their not-so-stellar performances.

Comparing Industries

• Finance: You can usually find a golden parachute here, even in failure.
• Tech: Failing startups may not be as forgiving in the funding department, but the founders often walk away with hefty exit packages.
• Crypto: Oh boy, it’s a different ball game—often driven by speculation and questionable ethics.

The Fallout from Failed Deals

Back in September, Voyager had a chance to sell its assets for a jaw-dropping $1.4 billion to FTX US, but Fate had other plans, leading to FTX’s spectacular crash. The fallout meant that creditors potentially lost an opportunity to recover 72% of their funds. Sigh, it feels a bit like losing a lottery ticket you never bought!

How Much Can Creditors Recover?

As of May 8, Voyager claims it had $629.8 million available for the first wave of recoveries against $1.8 billion owed. If all goes well and that sneaky claim from FTX doesn’t come to roost, creditors might find themselves in a slightly better position. But that’s a big ‘if.’

Conclusion: The Future of Voyager’s Customers

In the end, Voyager’s customer base is left clutching their digital coins, wondering how and when they will see a return on their investments. It feels reminiscent of sitting through a suspenseful drama where the ending is anything but certain. So, as Voyager moves forward, we’ll be watching closely to see who gets what… and if those executives ever have to answer for their misfortunes!