What is the status of Voyager’s Chapter 11 Bankruptcy?

  • Updated

On May 5th, 2023, Voyager filed the procedures with the Bankruptcy Court detailing how it intends to execute the company’s Chapter 11 plan and provide initial recoveries in crypto to customers through the Voyager app. Alternatively, customers may choose to receive their initial recoveries in cash after the 30-day crypto withdrawal period has ended.

On May 19th, 2023, Voyager’s Chapter 11 plan went into effect. In accordance with the plan, a plan administrator has taken over management of Voyager to execute the plan, make distributions, and wind down the company.

Under the leadership of the plan administrator, Paul Hage, we are moving promptly to take the necessary steps to prepare for the initial return of value to customers.

We will provide more information in the coming days on the initial return of value, including steps you may need to take.

On May 27th, 2023, the Plan Administrator filed a proposed amendment to the Liquidation Procedures under which the Plan Administrator will hold back all Unsupported Tokens until a determination can be made regarding whether, and to what extent, they can be liquidated. 

This amendment was prompted by certain statements made by the SEC. These statements necessitate additional action by the Plan Administrator concerning certain cryptocurrencies on the Voyager platform. Specifically, the Plan Administrator intends to seek clarification from the Bankruptcy Court that a liquidation of Unsupported Tokens and, as necessary, Supported Tokens, is consistent with applicable nonbankruptcy law (e.g., securities laws). We do not yet have an estimated timeline for when clarification will be provided.

A hearing on the amended Liquidation Procedures is currently scheduled for June 6. If the Bankruptcy Court approves the amended Liquidation Procedures, the Plan Administrator intends to move forward with making the initial distribution of Supported Tokens as soon as practicable.

Return of Value

The estate has $1.334 billion in assets which equates to 75.68% of the aggregate value of customer claims against Voyager’s estate. Customers will receive an initial recovery estimated to be 35.72% of their claim amount due to certain holdbacks. The chart below outlines how this percentage is calculated. 

 Depending upon resolution of the FTX/Alameda preference claim dispute, the success of any additional claims brought by the Voyager Plan Administrator against third parties, as well as any recovery by the Voyager estate as a creditor in the Three Arrows Capital liquidation, customers may receive additional recoveries in the future. Subsequent recoveries can be made in either cash or crypto at the Plan Administrator’s discretion.



Choice of Crypto or Cash for the Initial Recovery 

You may choose either to take your initial recovery in crypto through the Voyager platform or to wait until the crypto withdrawal period is over to receive your initial recovery in U.S. dollars.

To receive your initial recovery in crypto, once access to the Voyager app is made available, you will have 30 days to login and transfer supported crypto from your Voyager account to a designated wallet address (whether on another U.S.-based platform or wallet). 

To receive your initial recovery solely in U.S. dollars you do not need to take any action. Following the close of the 30-day crypto withdrawal window, your account will be liquidated and you will receive U.S. dollars by either check or possibly ACH withdrawal. 

Once the plan is effective, we will provide more information on next steps, including when the 30-day window will be opened.

Our restructuring information line remains available at +1 (855) 473-8665 (toll-free in the U.S.) or +1 (949) 271 6507 (for parties outside the U.S.), and information can also be found on our case website at https://cases.stretto.com/Voyager.