First Voyager payouts should begin by June 1, creditors’ committee says

Voyager’s Official Committee of Unsecured Creditors said on May 17 that a pending repayment plan will take effect in the next few weeks.

Users could access funds in coming weeks

The committee said that bankruptcy courts have approved Voyager’s liquidation procedures and said that the plan will take effect as early as May 19.

Voyager customers should be able to access their funds by June 1, according to the creditors’ committee. However, the group did not provide any guarantee around that deadline; it instead stated that it is “still working toward” this goal.

Earlier, Reuters reported that Voyager customers will receive about 35% of the cryptocurrency deposits that they originally held with the company. Voyager has been granted permission to return $1.33 billion in total.

Later distributions could see users recover up to 63.7% of their funds depending on the outcome of litigation with FTX, which intends to reclaim an earlier loan.

Voyager collapsed nearly one year ago

Voyager initially halted withdrawals on July 1, 2022 and filed for bankruptcy on July 6, 2022. The company attempted to sell its assets to both FTX and Binance.US in the months that followed, but both of those deals ultimately failed.

Another bankrupt crypto company, Celsius, also made progress today. Court proceedings indicate that the company will likely sell its assets as its auction concludes.

Both companies were affected by a crisis that largely affected crypto firms engaged in lending and borrowing in June 2022. Three Arrows Capital (3AC) and CoinFLEX also failed at that time, while TerraUSD failed one month earlier in May 2022.

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