Voyager Digital’s lawyers said it will self-liquid assets and cease operations after the bankrupt Bitcoin and altcoin lender fails to reach an agreement on the sale to FTX US or Binance.US. Here are the details…
Liquidation decision for altcoins from Voyager
Crypto broker Voyager Digital will now liquidate its assets. For cryptocoin.com As we have also reported, agreements with FTX US and more recently Binance US to acquire the company have failed. In a filing Friday, Voyager stated that a number of non-retractable crypto assets on the platform will be liquidated. He said it would be returned to customers. These include major cryptocurrencies such as Algorand (ALGO), Celo (CELO), and Avalanche (AVAX).
A number of other major cryptocurrencies on the platform will not be liquidated, but will be returned to customers in digital form, albeit at a recovery rate of about 36 percent, according to the court filing. These include Aave (AAVE), Ethereum (ETH), Bitcoin Cash (BCH) and 65 other major crypto assets. The bankrupt firm said on Twitter that former customers will soon receive some sort of refund. “We hope that the first deployments will begin in the next few weeks,” he wrote.
Binance US, the sister company of crypto exchange Binance, which claims to be independently managed, left a $1.3 billion restructuring deal to buy Voyager assets last week. The company cited “the hostile and uncertain regulatory climate in the United States.”
Why was Voyager in trouble?
Crypto-assets broker Voyager exploded last year after revealing that it had massive exposure to failing crypto hedge fund Three Arrows Capital. The firm has since been working on how to return assets to investors using its services. Crypto exchange FTX was planning to buy the distressed assets of Voyager; however, he himself went bankrupt in an unexpected and highly publicized collapse that subsequently shook the crypto ecosystem.
Its founder and former boss, Sam Bankman-Fried, has since faced 13 charges and awaits trial. Creditors holding any of the 67 “supported” tokens, including BTC and ETH, will be able to directly withdraw the allowed percentage of their crypto when stuck on the platform. For those holding any of the 38 “unsupported tokens” including SOL and ALGO, Voyager will liquidate everything and refund customers with USDC, a stablecoin. Appeals regarding the planned liquidation process must be filed with the US Bankruptcy Court for the Southern District of New York (SDNY) by May 15.
Contact us to be instantly informed about the last minute developments.twitter‘in,Facebookin andInstagramFollow andTelegramAndYouTubejoin our channel!
Read more Voyager Begins Liquidation: These Altcoins Are At Risk!