Voyager Digital is preparing to reopen its app and allow customers to finally withdraw their funds nearly one year after it filed for Chapter 11 bankruptcy.
Voyager’s bankruptcy plan administrator Paul Hage said in a June 14 court filing that around June 15 the Voyager app would be updated to show the amount available for withdrawal, and estimated that the withdrawal period would start somewhere between June 20 and July 5.
The bankruptcy plan was first approved in court on May 17 and will result in customers initially receiving 35.72% of their claims by withdrawing crypto through the Voyager app or in cash after 30 days.
Within the filing, Hage also noted that bankrupt crypto hedge fund Three Arrows Capital still owes Voyager $650 million, so while this first tranche of withdrawals allows for just over 35% of customer funds to be withdrawn, “the primary focus will shift to recovering additional assets that can be distributed to creditors” once the initial distribution is completed.
Additionally, an extra $445 million of customer funds could also be made available to creditors pending a final resolution of Alameda Research’s preference claim against Voyager, which is not expected to happen until at least mid-September 2023.
After originally filing for bankruptcy on July 5, Voyager submitted two prior bankruptcy plan proposals, but both have fallen through.
The first of these was to the United States arm of FTX, FTX US, but the $1.4 billion deal fell through after FTX filed for bankruptcy.
Subsequently a $1 billion deal with Binance.US also fell through after it backed out on April 25, citing a “hostile and uncertain regulatory climate in the United States.”
