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Bankrupt cryptocurrency brokerage Voyager Digital may soon commence reimbursement of its creditors, with the process potentially commencing in a matter of weeks, as per the Voyager creditors' committee.
On May 4, the Voyager Official Committee of Unsecured Creditors (UCC) tweeted that the insolvent crypto company is nearing the end of its bankruptcy liquidation process. The UCC expressed optimism that "initial disbursements will commence in the upcoming weeks."
The update from the UCC arrives 10 days after Binance.US withdrew from its original agreement to acquire $1.02 billion in Voyager assets. The crypto exchange cited "the adverse and unpredictable regulatory environment in the United States" as the rationale for retracting from the transaction.
Thankfully, the restructuring strategy for Voyager incorporates a "toggle option," which enables the company to proceed with self-liquidation in light of Binance.US's decision to abandon the deal. This mechanism allows the defunct broker to distribute funds and cryptocurrencies directly to clients through the Voyager platform.
The UCC expressed disappointment with Binance.US's decision, announcing that it would explore possible claims against the crypto exchange for its eleventh-hour reversal.
It is important to note that Voyager must now submit its liquidation procedures to the U.S. Bankruptcy Court for the Southern District of New York. As per the committee, concerned parties have a 10-day window to raise objections to the liquidation process.
The UCC clarified that if no objections are lodged within the 10-day timeframe, Voyager's plan will "become effective." However, if an objection is submitted, the court will conduct a hearing to evaluate the objection before approving the liquidation strategy.
Of the 61,300 Voyager customers who voted on the court's restructuring plan, 97% were in favor. Notably, at the time of voting, participants were under the impression that Binance.US would be taking over the stranded assets.
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