Voyager Digital Provides Update on Recovery Plan

Key Takeaways

Voyager Digital has revealed an replace on its plans to return account balances to its clients.
The agency says that it has $1.3 billion of cryptocurrency and $650 million in claims in opposition to 3AC to distribute.
Voyager didn’t say precisely how a lot customers will obtain, however added that customers will be capable to vote on the plan.

Failing cryptocurrency lending firm Voyager Digital introduced a restoration plan for customers in a weblog publish in the present day.

Voyager Will Pay Out Asset Shares

Following its earlier resolution to droop withdrawals, Voyager now says that it plans to return funds to customers.

“We’re working to revive entry to USD deposits, which belong to clients and can return to those self same clients,” the corporate wrote in a weblog publish dated Jul. 11.

Voyager defined that it’s holding buyer funds in a For Advantage of Prospects (FCB) account on the Metropolitan Industrial Financial institution of New York. These funds can be accessible following a “reconciliation and fraud prevention course of.”

Voyager didn’t say precisely how a lot cash clients will obtain. Nonetheless, it did say that it has $1.3 billion of cryptocurrency and over $650 million in claims in opposition to Three Arrows Capital.

Prospects will obtain a pro-rata share of 4 completely different belongings: cryptocurrency, proceeds from the 3AC restoration, frequent shares within the reorganized firm, and present Voyager tokens.

Moreover, clients are insured for as much as $250,000 beneath Federal Deposit Insurance coverage Company (FDIC) insurance coverage.

Prospects Might Not Be Glad

Voyager suspended withdrawals on Jul. 1 and filed for chapter days later. Whereas the restoration plan is a step towards paying again clients, not everybody can be happy.

Beneath the plan, customers will obtain solely a share of Voyager’s belongings. This doubtless signifies that some customers will obtain lower than their account steadiness—although it’s ambiguous as as to if the agency intends to revive normal withdrawals as effectively.

Moreover, reviews regarding Voyager’s FDIC coverage have prompted controversy. Whereas the agency initially marketed overarching FDIC insurance coverage, current statements contend that this insurance coverage solely applies within the occasion of Metropolitan Industrial Financial institution’s failure—not Voyager’s failure. At the moment’s replace confirmed this.

Dissatisfied clients could take different programs of motion to recuperate their funds. One authorized agency, Siskinds LLP, introduced a class-action swimsuit on behalf of Voyager customers in the present day.

Voyager additionally says that its restoration plan shouldn’t be essentially closing; clients will be capable to vote on the proposal described in the present day.

Disclosure: On the time of writing, the creator of this piece owned BTC, ETH, and different cryptocurrencies.

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