Voyager Digital’s lawyers said it will self-liquid assets and cease operations after the bankrupt Bitcoin and altcoin lender fails to reach an agreement on the sale to FTX US or Binance.US. Here are the details…
Liquidation decision for altcoins from Voyager
Crypto broker Voyager Digital will now liquidate its assets. For cryptocoin.com As we have also reported, the agreements made for the acquisition of the company by FTX US and Binance US were unsuccessful. In a filing Friday, Voyager stated that many non-retractable crypto-assets on the platform will be liquidated. He said it would be returned to customers. These include major cryptocurrencies such as Algorand (ALGO), Celo (CELO), and Avalanche.
A number of other major cryptocurrencies on the platform will not be liquidated, according to the court filing. However, it will be returned to customers in digital form, albeit at a recovery rate of about 36 percent. These include Aave (AAVE), Ethereum (ETH), Bitcoin Cash and 65 other major cryptos. The bankrupt firm said on Twitter that former customers will soon receive some sort of refund. “We hope that the first deployments will begin in the next few weeks,” he wrote.
Binance US, the sister company of crypto exchange Binance, which claims to be independently managed, left a $1.3 billion restructuring deal to buy Voyager assets last week. The company cited “the hostile and uncertain regulatory climate in the United States.”
Why was Voyager in trouble?
Crypto-assets broker Voyager exploded last year after revealing that it had massive exposure to failing crypto hedge fund Three Arrows Capital. The firm has since been working on how to return assets to investors using its services. Crypto exchange FTX was planning to buy the distressed assets of Voyager. But then he went bankrupt with the unexpected collapse that shook the crypto ecosystem and caused great public resentment. FTX founder Sam Bankman-Fried has since faced 13 charges and awaits trial.
As a result, what will creditors do if they own any of the 69 total tokens? It is stated that these investors can directly withdraw the allowed percentage of their crypto when they are stuck on the platform. For those holding any of the 38 “unsupported tokens”, including SOL and ALGO, Voyager will liquidate everything. It will then reimburse customers with USDC, a stablecoin. Appeals regarding the liquidation process must be submitted to the New York US Bankruptcy Court by May 15.
