Voyager’s Bankruptcy Saga: A Timeline
The wild ride of crypto brokerage Voyager has reached a new chapter: bankruptcy. After gaining approval for its third bankruptcy plan on May 17 from the United States Bankruptcy Court for the Southern District of New York, perhaps the only thing less stable than the crypto market itself is Voyager’s journey. Judge Michael Wiles officially signed off on the plan after Binance.US pulled a fast one and backed out of a massive $1 billion acquisition on April 25. Talk about a shocking finale!
Liquidation Nation: What Comes Next?
The next action item on Voyager’s to-do list is to liquidate its assets. Translation? They’re going to distribute their remaining loot to creditors and customers like it’s a hot ticket item at a yard sale. As of May 8, Voyager had about $1.33 billion of assets to work with, but only $629.8 million was open for immediate grabs against about $1.8 billion in claims. Spoiler alert: If you’re expecting a fat check, don’t book that dream vacation just yet. Customers can expect an initial recovery rate of approximately 35.72% of their claims in either crypto or cash after a 30-day waiting period.
The Grumpy Lawyer’s Dilemma
Now, let’s pause for a moment and discuss the elephant (or perhaps the sinking ship) in the courtroom. Why are Voyager’s lawyers and executives still cashing in their paychecks? After all, if you flip through the pages of ‘How to Run a Crypto Business’ and do the exact opposite, where’s the accountability? People are questioning the rationale behind the lack of financial consequences for those involved. In what other industry can you fail spectacularly yet still emerge as something resembling a winner? Let’s just say it’s a tough gig being a concerned creditor these days.
Bidding Wars: The FTX Fallout
Before Voyager’s recent debacle, there was a bidding frenzy for its assets. FTX US once offered $1.4 billion. This was before they decided to take the express lane to collapse-ville. Had that sale gone through, creditors might have seen a juicy recovery of 72% of their investments. But hold on to your seats; FTX then claimed they were owed $445.8 million for prior loan repayments. You’ve got to love the irony of a bankrupt bid trying to claim what’s apparently theirs!
What Lies Ahead for Voyager Customers?
As Voyager’s saga unfolds, remain alert for this catchy offer: crypto in exchange for recovery. Customers will receive a combination of their remaining crypto assets, proceeds from Three Arrows Capital recovery, some shiny new shares in the restructured Company, and yes, even Voyager tokens. Imagine returning from a holiday to find you’ve got some tokens and a paltry amount of cash—albeit a fun story to tell!
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