The bankrupt Voyager platform received $484 million in payments to creditors

Bankrupt crypto company Voyager Digital has made progress to repay its creditors, securing $484 million in claims from FTX, Three Arrows Capital (3AC) and directors and officers (D&O) insurance. This is a major milestone in the company's financial recovery and creditor recovery efforts.

In an April 9 filing in the United States Bankruptcy Court for the Southern District of New York, Voyager said most of the recovered funds, about $450 million, came from a settlement with FTX.

Voyager filed for bankruptcy in July 2022 as the crypto market experienced several shocks, including the collapse of the Terra ecosystem.

In October 2023, the U.S. Commodity Futures Trading Commission and the Federal Trade Commission (FTC) filed parallel charges against former Voyager CEO Stephen Ehrlich for alleged fraudulent statements.

This settlement, including interest, accounts for about 25% of Voyager's creditors' total claims and is expected to be paid soon.

In addition to the FTX settlement, Voyager received approximately $675 million in claims from ongoing litigation with Three Arrows Capital. Of this amount, $20.43 million represents Voyager's pro rata share of 3AC's initial distribution.

The manager expects additional fees to be paid in future years as assets are sold and additional litigation settlements are anticipated. The settlement, brokered by D&O Insurance, allocates at least $14.35 million to Voyager's creditors.

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As Voyager went through its financial recovery journey, the company faced operational hurdles, including numerous bounced checks. About 270,000 checks totaling $17 million remain unpaid, most of them worth less than $25.

Voyager has set a deadline of April 20, after which these unpaid checks will be voided if not claimed.

Voyager is still dealing with the consequences of the FTX data breach. An investigation is underway to determine the origin and consequences of the breach that led to the lender's data breach.

Starting in May 2023, the restructuring plan proposes that Voyager customers recover 35.7% of their claims in cryptocurrency or cash. The crypto exchange settled with the FTC in November 2023 with a $1.65 billion settlement.

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