VOYAGER DIGITAL RECOVERS $484 MILLION FROM FTX AND 3AC SETTLEMENTS 

Voyager Digital has successfully recovered $484.35 million through settlements with FTX, Three Arrows Capital (3AC), and from Directors and Officers (D&O) insurance claims, as reported in a recent status update to the United States Bankruptcy Court for the Southern District of New York. This recovery is part of the ongoing efforts to reimburse creditors after the company’s financial downturn.

Significant Recoveries from FTX and 3AC

An April 9 court filing disclosed that $450 million of these recovered funds stemmed from a settlement with FTX. This sum represents about 25% of the total original claims held by Voyager’s creditors and is scheduled for distribution soon, offering crucial financial relief to those affected.

As part of the settlement terms, the FTX debtors will relinquish their claim to a $5 million deposit from Voyager’s bankruptcy sale, which will be transferred to the Wind-Down Debtor’s estate. Both parties have agreed to waive and release all mutual claims, including any litigation proofs previously filed, and to dismiss the ongoing FTX legal case.

Moreover, Voyager’s litigation with Three Arrows Capital (3AC) has resulted in a recognized claim worth approximately $675 million, of which $20.43 million has already been received as Voyager’s share from the initial distribution by 3AC. The plan administrator expects additional funds to be recovered through further court actions and asset liquidations.

From D&O insurance mediation, Voyager secured an additional $14.35 million, enhancing the financial resources available for creditor reimbursement.

Operational and Legal Challenges

Despite these financial recoveries, Voyager is navigating several operational hurdles. Currently, about 270,000 issued checks, totaling $17 million, have not been cashed, with the majority under $25 each. To resolve this, Voyager has set a deadline of April 20, 2024, after which all uncashed checks will be voided as unclaimed.

The company is also contending with complications arising from an FTX data breach that exposed creditor information, with investigations ongoing to determine the breach’s origins and full impact.

Voyager initiated Chapter 11 bankruptcy proceedings in July 2022 following significant disruptions in the cryptocurrency market, including the Terra ecosystem collapse in May. By May 2023, a restructuring plan was approved, offering Voyager customers the possibility of recovering 35.7% of their claims, payable in cryptocurrency or cash. Additionally, inNovember 2023, Voyager agreed to a settlement with the FTC, committing to $1.65 billion in monetary relief to its customers.

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