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A recent update on Voyager Digital, which went bankrupt in 2022, suggests that its customers will soon access their lost funds.
The company’s court filing on June 14 revealed that the Voyager app would be open on June 15, disclosing the total amount to be withdrawn and facilitating the withdrawal process for customers.
The firm’s bankruptcy plan administrator, Paul Hage, notably revealed this decision in the court filing. He also mentioned plans to raise more customer funds after this first payout phase.
Customers Can Withdraw 35% Of Their Funds From Bankrupt Voyager Digital
According to Hage, the app will open on June 15, but the main withdrawal processes will commence between June 20 and July 5.
Notably, this opportunity is coming to the customers after one year of not accessing their funds following Voyager Digital’s crash in 2022. Once the process starts, the customers can withdraw 35% of their funds in this phase, as approved by the court in May 2023.
Recall that Voyager Digitals had proposed a repayment plan to the court on May 5 following Binance.US’s withdrawal from buying $1 billion worth of its assets on April 25.
On May 17, Judge Michael Willes of the US Bankruptcy Court for the Southern District of New York approved the plans, which stated a first repayment of 35.7% to Voyager’s customers.
So, the approved percentage is what the customers hope to withdraw from June 20 either in crypto directly from the app or wait 30 days to receive cash.
Hage Disclosed More Funds On The Way For Customers
Voyager Digital filed for bankruptcy in July 2022 due to the crypto market crash that saw many assets lose value.
Also, when Three Arrows Capital collapsed in 2022, Voyager felt the impact as the firm owed it $670 million and couldn’t repay.
Following the filing, the firm’s CEO Stephen Ehrlich announced that “Customers with crypto in their account(s) will receive in exchange a combination of the crypto in their account(s), proceeds from the 3AC recovery, common shares in the newly reorganized Company, and Voyager tokens.
In this recent filing, the bankruptcy administrator Hage also revealed vital information about the company’s plans to make more funds available for its creditors. Hage noted that Three Arrows Capital which also filed for bankruptcy in 2022, still owes $650 million to Voyager.
Secondly, if the court makes a final resolution to Alameda Research’s preference claim in the repayment in mid-September 2023, another $445 million of Voyager’s customer’s funds will become available.
Based on these, Hage stated that “the primary focus will shift to recovering additional assets that can be distributed to creditors” after completing this first phase of repayments.
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