Voyager Digital Set To Allow Customer Withdrawals Next Week
Summary: After filing for Chapter 11 bankruptcy more than a year ago, Voyager Digital is nearly ready to restore its app and enable consumers to withdraw assets. Between June 20 and July 5, users will be able to make withdrawal requests, and the Voyager app will be updated to reflect the withdrawal balance.
Voyager Digital, a cryptocurrency brokerage, is almost ready to restore its app and allow customers to withdraw their assets after filing for Chapter 11 bankruptcy over a year ago. Voyager’s bankruptcy plan administrator Paul Hage said the withdrawal period will commence between June 20 and July 5 in a court filing dated June 14.
Balance Update on App on June 15
He also said that the Voyager app would be updated around June 15 to show the withdrawal balance. Moreover, The bankruptcy plan, first approved by the court on May 17, gives customers 30 days to either get a cash refund or withdraw crypto using the Voyager app.
Since the first distribution only allows for 35% of customer funds to be withdrawn, and since bankrupt crypto hedge fund Three Arrows Capital still owes $650 million to Voyager, Hage stated in the filing that “the primary focus will shift to recovering additional assets that can be distributed to creditors” after the first distribution is finalized.
It is not expected that Alameda Research’s preferred claim against Voyager will be decided until at least the middle of September 2023, at which point creditors may also have access to an extra $445 million in customer cash.
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On July 5, Voyager filed for bankruptcy for the first time. Both of the prior bankruptcy plan ideas were shot down. The first was scheduled to go to FTX US in the US for $1.4 billion, but that deal fell through when FTX filed for bankruptcy. After that, Binance and the firm agreed to a $1 billion deal that ultimately fell through as well.