Voyager Digital to Self-liquidate Assets Post Multiple Acquisition Failures
- May 15 is the deadline for filing objections to the liquidation process.
- The cancellation of the Binance U.S. acquisition was a major setback.
Due to the failure to reach acquisition agreements with Binance and FTX.US, Voyager Digital plans to self-liquidate its assets and cease operations. The exchange’s unexpected insolvency and the following arrest of its CEO, Sam Bankman-Fried, caused the aborted FTX-Voyager purchase to fall through.
Although the digital asset market has been trying to establish itself in the United States. Despite a severe crackdown by authorities, the breakdown of the agreement with the U.S. subsidiary of crypto behemoth Binance was considered a major setback.
Striving to Repay Creditors
The projected first recovery for Voyager clients was 35.72 percent, as stated in a court filing on May 4th. In addition, the document said that 38 “unsupported” tokens, including Tron (TRX), Solana (SOL), Algorand (ALGO), Celo (CELO), and Avalanche (AVAX), are unable to be withdrawn and would be liquidated and refunded to users.
But individuals who have one of the 67 “supported” assets. Such as Bitcoin (BTC) or Ether (ETH), may take out the permitted percentage of their holdings immediately. In the coming weeks, it will begin making the first allocations.
Moreover, the US Bankruptcy Court for the Southern District of New York has set May 15 at 4 PM EST. As the deadline for filing objections to the liquidation process.
After the crypto hedge fund Three Arrows Capital (3AC) defaulted on a sizable credit position given by Voyager, the company filed for bankruptcy protection in July 2022. Since then, the firm has been figuring out how to restore funds to investors who utilized its services.
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Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
