Voyager Digital Makes Significant Progress in Creditor Reimbursement Post-Bankruptcy
Voyager Digital, a prominent player in the cryptocurrency space, has made significant strides in its efforts to reimburse creditors post-bankruptcy. The company has successfully secured $484.35 million from settlements with key stakeholders, including FTX, Three Arrows Capital (3AC), and Directors and Officers (D&O) insurance claims.
The recovery process has been a complex and multi-faceted one, with Voyager leveraging various sources and legal actions to bolster its financial standing. The lion’s share of the recovery, totaling $450 million, stems from an agreement with FTX, a major cryptocurrency exchange. This settlement, inclusive of interest, accounts for approximately 25% of the total claims made by Voyager’s creditors and is slated for distribution in the near future.
In addition to the FTX settlement, Voyager has also made significant headway in its proceedings against Three Arrows Capital (3AC), with recoveries amounting to around $675 million. The company has already received a portion of liquidating assets proceeds, totaling $20.43 million, with expectations of further payments as assets are liquidated and litigation recoveries materialize over time. Furthermore, a mediation settlement with the D&O Insurance has earmarked a minimum of $14.35 million for the benefit of creditors, further fortifying the recovery fund.
Despite these positive developments, Voyager continues to grapple with operational challenges, including a substantial number of uncashed checks totaling $17 million. To address this issue, the company has set a deadline of April 20, 2024, after which these checks will be voided as unclaimed, demonstrating a proactive approach to resolving logistical hurdles.
Moreover, Voyager is also contending with the aftermath of a data breach that compromised creditor information. To mitigate the impact of this breach, the company is actively collaborating with external cybersecurity experts to identify the source and scope of the breach and promptly address any vulnerabilities.
As Voyager Digital navigates its path to financial recovery, these recent developments underscore the company’s commitment to fulfilling its obligations to creditors and overcoming operational challenges in a rapidly evolving industry.
