Voyager Digital, a cryptocurrency broker, is in the process of relaunching its app for customers to withdraw their funds. This comes about a year after the company announced bankruptcy and submitted its Chapter 11 (a chapter of the US Bankruptcy Code) plan.
Paul Hage, administrator of Voyager's bankruptcy plan, announced that the app will be updated on June 15 to indicate what funds can be withdrawn. The withdrawal period is expected to start from June 20 to July 5.
On May 17, the court approved the bankruptcy plan and customers are entitled to receive 35.72% of their claims either in cryptocurrency through the Voyager app or in cash within 30 days.
Hage said in a statement that Three Arrows Capital, a bankrupt crypto hedge fund, still owes Voyager $650 million. The first series of withdrawals will recover no more than 35% of customer funds. The target then moves on to recover further assets for distribution to creditors after the initial partition is completed.
Additionally, there is a further $445m which may be transferred to creditors pending a final decision on Alameda Research's preferential claim against Voyager. A ruling is not due until mid-September 2023.
Following the bankruptcy filing on July 5, Voyager made two more previous bankruptcy proposals. Unfortunately, both proposals were not accepted.
The first plan was developed in partnership with FTX.US, but it failed after FTX itself filed for bankruptcy.
Later, the $1bn contract with Binance.US failed to materialise as the company backed out on April 25 due to a "hostile and unstable regulatory environment in the US".
