Voyager Digital plans to self-liquidate its assets and halt operations after failing to reach purchase agreements with Binance as well as FTX.US.
The planned acquisition of FTX-Voyager fell through following the exchange’s precipitous fall and the subsequent arrest of its chief executive, Sam Bankman-Fried. However, the collapse of the deal with the US arm of crypto giant Binance was seen as a blow to the digital asset industry’s efforts to establish itself in the US amid a crackdown. massive by regulators.
According to a court deposit on May 4, Voyager’s estimated initial customer recovery was found to be 35.72%. He also revealed that 38 “unsupported” tokens – such as Tron (TRX), Solana (SOL), Algorand (ALGO), Celo (CELO) and Avalanche (AVAX) – cannot be withdrawn and will therefore be liquidated. and returned to customers. .
On the other hand, those who own one of the 67 “supported” assets, such as Bitcoin (BTC) and Ether (ETH), will be able to directly withdraw the authorized percentage of their holdings. The first distributions should begin in the coming weeks.
The deadline for any objections to the liquidation process is May 15 at 4:00 p.m. EST, and responses must be submitted in the United States Bankruptcy Court for the Southern District of New York.
Purchase transaction failures
Voyager filed for bankruptcy protection in July 2022 after crypto hedge fund Three Arrows Capital (3AC) defaulted on a large loan position extended by the platform. The company has since worked on how to return the assets to investors who used its services.
FTX won the bid to buy its assets in October 2022, a month before its own eventual collapse. Voyager then received an offer from Binance.US, which it described as “the highest and best offer for its assets after a review of strategic options with the primary objective of maximizing the value returned to clients and other creditors within an expedited period”.
Binance.US spent months trying to convince regulators to approve the acquisition, but ran into several hurdles, including opposition from the Securities and Exchange Commission (SEC) as well as the Committee on Foreign Investments in the country.
The billion-dollar deal ended last month after the exchange issued a termination letter highlighting the hostile regulatory climate. Voyager called the development “disappointing”.
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