Key Takeaways
- Court documents reveal that insolvent crypto lending brand Voyager Digital's customers can retrieve 72% of their stake if the proposition to buy the brand by FTX US becomes successful
- Bloomberg disclosed on Wednesday that the sale won't be possible until a judge endorses Voyager's payout scheme.
Court documents reveal that insolvent crypto lending brand Voyager Digital's customers can retrieve 72% of their stake if the proposition to buy the brand by FTX US becomes successful. Customers of Voyager Digital have found something to be happy about since the company went bankrupt. Bloomberg disclosed on Wednesday that the sale won't be possible until a judge endorses Voyager's payout scheme.
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Customers of Bankrupt Crypto Lender Voyager Could Recover 72% of Their Funds if FTX Sale is Approved
Voyager, the Toronto-located company, appealed for the bankruptcy protections cited in Chapter 11 of the U.S. Bankruptcy Code of the Southern District of New York. Voyager filed for this as far back as July. During that period, Voyager's customers and value bandwidth had $1 billion to $10 billion in assets and close to 100,000 creditors.
On October 18, another letter was sent to the court. In this letter, Voyager debtors mentioned that the successful auction of the company to FTX US would bless customers with a retrieval of 72% of the value of crypto stacked in their respective accounts in the space. The quick and successful sale to FTX will ensure the best possible recovery is offered to the stakeholders-- a means that simplifies the best resolution means possible.
Yesterday, during a hearing, Judge Michael R. Wile of the U.S Bankruptcy court rubber-stamped a provision where Voyager is granted the privilege to cancel the FTX deal. Perhaps there is a finer deal that works to ensure that stakeholders are able to retrieve their assets. However, it seems Judge Michael is willing to approve Voyager's insolvent payout schemes in December, which is very important to completing the sale to FTX US.
In addition, Voyager also asked for Wile's approval to forward its payout schemes to stakeholders so they can vote for or vote against them. Regardless of the result, the verdict of Judge Michael stands as superior. Let us know what your thoughts are in the comment section below.
