Voyager Digital’s Bankruptcy Woes Threaten $1B Asset Rescue
On Tuesday, Voyager Digital announced on Twitter that the majority of its credit claimants had approved the Chapter 11 bankruptcy plan.
Stretto, the bankruptcy administration company, counted the votes and reported that 59,183 individuals had backed the restructuring proposal, representing 98% of the claimants. More information about the bankruptcy case will be revealed at the hearing on Thursday.
The bankruptcy filing revealed that 65% of the claim holders in the voting classes and 85% of the claim holders in the non-voting classes had selected the Release Opt-In.
In December 2022, Binance.US made the highest offer for Voyager Digital’s assets, with an approximate value of $1.022 billion. The deal has a deadline of April 18, 2023, which can be extended by one month. However, regulators have objected to the acquisition, citing potential violations of US securities law.
Voyager has been selling its assets amid legal battles. According to Lookonchain’s analysis of on-chain data, the defunct crypto lender has been trading its assets through Coinbase Exchange, receiving at least $100 million in USD Coin in the past week.
Before Binance.US, FTX US had sought to acquire Voyager Digital for around $1.5 billion, but a legal dispute has arisen between the two parties.
FTX has sued Voyager Digital for $445.8 million in loan repayments, and Voyager Digital’s unsecured creditors have subpoenaed former FTX CEO Sam Bankman-Fried and other top executives of the bankrupt exchange.