According to Cointelegraph: Bankrupt cryptocurrency company Voyager Digital has advanced toward reconciling its debts by securing $484 million via settlements with FTX, Three Arrows Capital (3AC), and through Directors and Officers (D&O) insurance claims. This forms a crucial step in Voyager's financial recovery process and efforts to reimburse its creditors.
The recently filed documentation with the U.S. Bankruptcy Court for the Southern District of New York revealed that the lion's share of the recovered funds, around $450 million, came from a settlement agreement with FTX.
Voyager had filed for Chapter 11 bankruptcy in July 2022 amidst a spate of shocks in the crypto market, including the collapse of the Terra ecosystem. Former Voyager CEO Stephen Ehrlich faced legal suits for fraudulent claims from both the U.S. Commodity Futures Trading Commission and the Federal Trade Commission.
The recovered amount, inclusive of interest, represents approximately 25% of Voyager creditors' total claims and is expected to be disbursed soon. Additionally, Voyager has secured a claim of about $675 million from ongoing litigation with Three Arrows Capital, of which $20.43 million will be Voyager’s share from the first distribution by 3AC.
Voyager continues to face operational obstacles, including a large volume of uncashed checks. The company has set an April 20 deadline for these checks, which will be nullified if not claimed. The company is also dealing with an FTX data breach, the origin and ramifications of which are currently being investigated.
As of May 2023, a restructuring plan proposed that Voyager's customers recover 35.7% of their claims in crypto or cash. Voyager settled with the FTC for $1.65 billion in monetary relief in November 2023.
