Voyager’s Bankruptcy Saga
On May 17, the United States Bankruptcy Court for the Southern District of New York gave the green light to Voyager’s bankruptcy plan. This decision marked the culmination of a rollercoaster ride for the firm, characterized by failed deals and a multitude of questions about accountability and recovery for creditors.
The Rollercoaster of Deals
Originally, Voyager hoped to sell $1 billion worth of its assets to Binance.US, but the deal fizzled out faster than a punctured balloon on April 25. The court’s approval came after the third proposed bankruptcy plan, submitted on May 5. This followed a previous auction attempt that ended in disappointment when FTX collapsed, thwarting a much-publicized bid for Voyager’s assets at $1.4 billion.
Lessons in Accountability
In an industry rife with volatility, it’s hard not to scratch your head (and maybe throw in a few eye rolls) at the legal and executive teams involved in the whole Voyager debacle. Why are these professionals still collecting paychecks despite their role in this colossal mess? As one skeptical observer shared on social media, “In what other industry can you fail at everything and still come out with millions?” Great question, and one many are grappling with as the court navigates its bankruptcy proceedings.
What’s Next for Creditors?
Creditors, meanwhile, are sweating bullets. Voyager indicated that customers might initially expect to recover 35.72% of their claims, either in crypto or cash after a 30-day wait. That’s like finding a fiver in your winter coat after a long-forgotten season—better than nothing, but still a far cry from what they’re owed.
Delaying the Inevitable?
With Voyager reportedly holding back $445 million to cover FTX’s claims for preferential recovery, creditors could potentially see more coming their way—if FTX’s claims don’t pan out. Just imagine holding your breath while waiting for a lifeguard to rescue you from the shallow end of a kiddie pool. Sweaty palms, anyone?
The Three Arrows Capital Connection
To add another layer of complexity, Voyager may still recover funds from the bankrupt Three Arrows Capital. After issuing a notice of default on a staggering loan of 15,250 Bitcoin (BTC) and 350 million USD Coin (USDC), Voyager’s potential recovery, initially valued at around $655 million, has grown to about $768 million as of now. A tiny glimmer of hope in an otherwise turbulent storm, perhaps?
A Cautionary Tale
As we navigate through this sea of confusion, one thing’s for sure: Voyager’s situation serves as a cautionary tale for investors. Trust is a tricky thing, especially in the crypto world, and with every new headline, that trust takes a deeper dive into murky waters.
