Voyager Digital Will Soon Reopen for Cryptocurrency Withdrawals

In a significant development, Voyager Digital, a renowned cryptocurrency brokerage, is gearing up to revive its application, offering customers the long-awaited opportunity to withdraw their funds. This major leap arrived almost a year after the company became mired in Chapter 11 bankruptcy.

The Voyager Bankruptcy Plan: A Beacon of Hope

Paul Hage, the appointed administrator of Voyager’s bankruptcy plan, shed light on this development during a court filing on June 14. He anticipates that by June 15, users of the Voyager app will see an update displaying their available withdrawal balance. He further estimates that the commencement of the withdrawal period could be expected between June 20 and July 5.

On May 17, the bankruptcy plan received its initial approval in the court, promising that clients would initially be able to claim 35.72% of their investments. These withdrawals could be made via the Voyager app in the form of cryptocurrency or in cash after 30 days.

Hage’s filing also highlighted the unsettled debt of $650 million owed by the now-bankrupt crypto hedge fund, Three Arrows Capital. While this first withdrawal phase allows for just over 35% of customer funds to be taken out, Hage emphasized that the primary concentration would transition to “recovering additional assets for distribution to creditors” following the completion of the initial disbursement.

Potential Resolution and Additional Funds for Creditors

Moreover, the saga doesn’t end here. An additional $445 million of customer funds could be unblocked for creditors. That hinges on the final resolution of a preference claim by Alameda Research against Voyager, an event not projected to occur until mid-September 2023 at the earliest.

The journey leading up to this moment has not been without its share of turbulence. Voyager Digital initially filed for bankruptcy on July 5. The firm has submitted two separate bankruptcy plan proposals, both of which have been unsuccessful.

The first proposal involved the United States division of FTX, FTX US. However, the ambitious $1.4 billion deal disintegrated when FTX filed for bankruptcy. Following this setback, a potential $1 billion agreement with Binance.US also collapsed. Binance.US withdrew its support on April 25, attributing the decision to a “hostile and uncertain regulatory climate in the United States.”

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