Bankrupt crypto broker Voyager Digital is in the process of finalizing distributions to creditors.
In a Twitter update on Thursday, Voyager’s official committee of unsecured creditors said it was working with the firm on filing a plan for liquidation procedures.
“The Liquidation Procedures will provide details on the process for creditors to receive distributions. After the Liquidation Procedures are filed, parties will have 10 days to object,” said the creditor committee.
4/ Voyager is also finalizing everything internally that is necessary to make distributions to creditors. We are hopeful that initial distributions will begin within the next few weeks.
— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) May 4, 2023
If all goes to plan, the creditor committee said it hopes creditors will be able to see their funds in as little as a few weeks. Liquidation Procedures are expected to be filed on May 5.
The development comes after Binance’s U.S.-based subsidiary Binance.US pulled out of a deal to acquire Voyager’s digital assets for a little over $1 billion last month. Binance.US attributed the decision to a hostile regulatory climate in the U.S., despite the deal receiving a green light from the government a week prior.
“While this development is disappointing, our chapter 11 plan allows for direct distribution of cash and crypto to customers (a ‘toggle option’) via the Voyager platform,” said Voyager at the time.
Voyager filed for Bankruptcy protection in July, citing crypto market volatility and the collapse of crypto hedge fund Three Arrows Capital (3AC), which defaulted on $670 million loan obligation to the firm.
In September, FTX.US won the rights to acquire Voyager’s assets with a winning bid of $1.4 billion. However, the agreement inevitably fell apart when FTX filed for bankruptcy itself, opening the doors for a second bidding process, with Binance.US emerging as the highest bidder.
Voyager’s creditor committee is now investigating potential claims against Binance.US for reneging on the acquisition.