Investing

Voyager's Bankruptcy Saga Comes to a Close as Court Approves Liquidation

Tim Fries

Published: May 17, 2023 10:16 pm

Last Updated: May 18, 2023 11:18 am

On Wednesday, May 17th, a bankruptcy court approved Voyager Digital’s liquidation plan. The ruling marks the end of the company’s long and rocky bankruptcy and the Committee of Unsecured Creditors stated it will attempt to begin initial distributions no later than June 1st.

Voyager Receives Approval For Liquidation Plan

This Wednesday, Bankruptcy Judge Michael Wiles approved Voyager Digital’s liquidation plan. On the same day, the Committee of Unsecured Creditors stated it will seek to start implementing the plan as soon as possible.

The Committee also expressed its hopes the plan might go effective already on Friday, May 19th, and stated it would, at that point, dissolve. The post also marks June 1st as the latest date for initial distributions.

According to a Reuters report on the matter, Voyager was approved to return around $1.35 billion in users’ cryptocurrency. This means that the customers can expect to see approximately 35% of their assets back.

Voyager’s Bankruptcy Saga Comes to Its End

The latest liquidation plan was necessitated by Binance.US’s recent decision to pull out of its $1 billion acquisition agreement with Voyager. The deal was announced already in late 2022, and, after a series of challenges, received court approval on

Binance’s American affiliate pulled out of the purchase nonetheless citing regulatory uncertainty. The company has recently found itself under increased pressure from US watchdogs and found itself as well as its CEO on the receiving end of a CFTC complaint.

Voyager’s bankruptcy has been mired by setbacks and failed acquisitions. Before Binance.US stepped in, the company made an agreement with FTX—an agreement that was approved only weeks before FTX itself collapsed.

This article originally appeared on The Tokenist