Voyager Digital, a prominent player in the cryptocurrency exchange industry, has made significant strides in compensating creditors post-bankruptcy. The company has successfully secured a total of $484.35 million through settlements with key entities such as FTX, Three Arrows Capital (3AC), and Directors and Officers (D&O) insurance claims. This achievement marks a crucial milestone in Voyager Digital’s financial recovery and creditor reimbursement efforts.
In a detailed report submitted to the United States Bankruptcy Court for the Southern District of New York, Voyager Digital disclosed that the majority of the reclaimed funds, approximately $450 million, were obtained through the settlement with FTX. This substantial amount of money has been crucial in helping the company address its financial challenges following its Chapter 11 bankruptcy filing in July 2022, amidst a downturn in the crypto market.
Furthermore, Voyager Digital has also secured a significant claim of approximately $675 million from the ongoing litigation with Three Arrows Capital. A portion of this amount, $20.43 million, represents Voyager’s share of the initial distribution from Three Arrows Capital. The company anticipates additional payments to be disbursed in the future as assets are sold off and further litigation settlements are finalized.
Additionally, a settlement reached through D&O insurance mediation is expected to allocate at least $14.35 million to benefit Voyager’s creditors. This injection of funds will further support the company’s efforts in compensating those who were affected by its financial collapse.
Despite these positive developments, Voyager Digital continues to face operational challenges, including a significant number of uncashed checks totaling $17 million. The company has set a deadline of April 20 for these uncashed checks to be claimed, after which they will be voided. Voyager is also grappling with the aftermath of a data breach, with an ongoing investigation being conducted to determine the extent of the breach and its impact on creditor data.
Looking ahead, Voyager customers may initially recover 35.7% of their claims in cryptocurrency or cash, as per a restructuring plan proposed in May 2023. The company recently settled with the FTC for $1.65 billion in monetary relief in November 2023, further highlighting its commitment to resolving legal and financial issues.
As Voyager Digital continues on its financial recovery journey, the company remains focused on addressing its outstanding obligations to creditors and navigating the challenges posed by its bankruptcy. The successful settlements with key entities and the ongoing efforts to secure additional funds demonstrate Voyager’s determination to emerge stronger from its financial difficulties.