According to a committee of Voyager creditors, money left on the platform of the insolvent crypto broker Voyager Digital may start to be returned to creditors in the “next few weeks.”
According to a tweet sent on May 4 by the Voyager Official Committee of Unsecured Creditors (UCC), the defunct cryptocurrency company is nearing the end of the bankruptcy liquidation process. Initial distributions should start within the next few weeks, the UCC “hopes.”
The UCC’s statement comes 10 days after Binance.US withdrew from its original agreement to buy Voyager’s assets for $1.02 billion, citing “the hostile and uncertain regulatory climate in the United States” as the cause.
Fortunately, a “toggle option” in Voyager’s restructuring plan enables the company to pursue self-liquidation if Binance.US decides to back out of the deal. This enables the bankrupt broker to provide consumers immediate access to cash and cryptocurrency through the Voyager platform.
The UCC expressed its disappointment with Binance.US’s decision and said that it will be looking into possible legal claims against the cryptocurrency exchange for its last-minute change of heart.
Notably, Voyager must now file the liquidation plans with the U.S. Bankruptcy Court for the Southern District of New York. According to the committee, parties have 10 days to raise any concerns with the liquidation processes.
If no objections are made in the next 10 days, according to the UCC, “Voyager will “go “effective” with the proposal.” However, before the liquidation plan can be implemented, the court will hold a hearing to hear any objections filed.
97% of the 61,300 Voyager users who cast ballots on the court’s reorganization proposal were in favor, although, at the time, they thought Binance.US would buy the stranded assets.
