Bankrupt crypto lender Voyager Digital will wound down its operations and liquidate its asset following failed attempts to sell them.

The bankrupt lender said its customers would get 36% of their assets. Voyager said customers with supported crypto holdings, like Bitcoin and Ethereum, can directly withdraw the allocated percentage.

Those with unsupported tokens, like Solana, would be repaid in USDC after the liquidation.

The 36% recovery rate is meager compared to the estimated 70% that Celsius creditors will get. If the deal with Binance.US or FTX were successful, the creditors would have recovered over 70% of their assets.

Meanwhile, Voyager creditors could still recover 64% of their assets if Alameda Research’s effort to claw back $446 million from the firm fails.

Alameda Research is the sister company of the bankrupt crypto exchange FTX. The FTX liquidators claim that the firm repaid its loans after filing for bankruptcy, adding that some loans were yet to mature.

However, Voyager argues against the claim and wants the court to rule that they were “avoidable preferential transfers.”

But the liquidation plan is not final yet. Interested parties could still file an objection before May 15 at the US Bankruptcy Court of the Southern District of New York.

Before filing for liquidation, Voyager had made two attempts to sell its assets to crypto exchanges, Binance.US and FTX.

On April 25, Binance.US withdrew from the deal, citing the hostile regulatory environment. Initially, the deal had drawn heavy pushback and was temporarily halted at some point. At the time, a spokesperson for the exchange said:

“The hostile and uncertain regulatory climate in the United States has introduced an unpredictable operating environment impacting the entire American business community.”

Before Binance US, FTX had agreed to acquire the crypto lending firm. But that deal fell through when FTX filed for bankruptcy in November 2022.

Voyager Token (VGX) has fallen more than 7% in the last 24 hours to $0.1855, according to BeInCrypto data.

Since Voyager filed for bankruptcy, VGX has fallen from over $1 to its current levels, with its market cap declining to around $50 million from a peak of over $300 million.

The post Bankrupt Voyager to Liquidate Assets Following Failed Sale to Binance.US appeared first on BeInCrypto.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

237 +