Update on Creditor Reimbursement Plan from Voyager Digital

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Last Updated on May 6, 2023 by Bitfinsider

An update for creditors has been released by Voyager Digital. On May 4, 2023, the company tweeted that they might be able to anticipate receiving some cash or cryptocurrency back “in a few weeks.” After a protracted and challenging journey, the TSX-listed cryptocurrency lender has released this update. Voyager Digital stopped accepting withdrawals on July 1 of last year and filed for bankruptcy a few days later. After nearly being acquired by Binance US, the failed company has been navigating the bankruptcy process ever since.

The crypto lender must now traverse the bankruptcy procedure in the Southern District of New York to pay creditors after Binance US pulled out of the agreement. But Voyager Digital claims that it is making progress in spite of the difficulties. The company explained in a tweet on Thursday that they are “in the process of finalizing liquidation procedures.” Voyager also warned creditors that before the plan can take effect, the liquidation procedures must be submitted.

Voyager is proceeding with their strategy to pay back creditors, but there is still a chance for challenges. Parties will have 10 complete days to object to the idea, claims the business. Voyager wants to make the plan “effective” at that point if no objections are raised. Before the plan can be implemented, the court must hold a hearing to hear any objections that are presented. The agreement included language outlining what would happen if the Binance US transaction fell through, enabling Voyager to start selling off assets.

The business announced on Thursday: “Voyager is also finalizing everything internally that is necessary to make distributions to creditors. We are hopeful that initial distributions will begin within the next few weeks.”

Reactions to the plan of Voyager Digital to pay back creditors have been conflicted. While many clients are content with the development, some are dissatisfied.

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