Announcing its progress in recovering funds from various sources, bankrupt firm Voyager Digital on Wednesday announced it has secured a combined $484.35 million from FTX, Three Arrows Capital (3AC), and Directors and Officers (D&O) insurance settlements.
In a detailed status update regarding the recovery and distribution of assets to creditors following the firm's financial collapse to the United States Bankruptcy Court for the Southern District of New York, the company stated that the bulk of the recovered funds—approximately $450 million—will come from the settlement with FTX.
This amount represents about 25% of Voyager creditors' original claims and is expected to be disbursed in a forthcoming distribution round.
This settlement with FTX, which includes interest, is a significant step toward reimbursing creditors affected by Voyager's downfall.
In addition to the FTX settlement, Voyager has secured a claim of roughly $675 million in the ongoing Three Arrows Capital proceedings.
Of this, $20.43 million constitutes Voyager's pro rata share of the initial distribution from Three Arrows Capital.
The plan administrator anticipates that further payments will be made over the next few years as assets continue to be liquidated and as litigation recoveries are achieved.
Furthermore, a settlement reached in the D&O insurance mediation will provide no less than $14.35 million for the benefit of Voyager creditors.
This settlement is part of the broader efforts to compensate those affected by the company's financial mismanagement.
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Challenges With Uncashed Checks And Security Concerns
The report also highlighted logistical issues, such as approximately 270,000 uncashed checks totaling $17 million.
A significant portion of these checks, around 187,000, are for amounts less than $25.
The plan administrator has set a deadline of April 20, 2024, after which all outstanding checks will be canceled and deemed unclaimed.
Additionally, Voyager continues to grapple with the aftermath of a data breach.
The investigation, assisted by specialized external professionals, is still underway to determine the source and full impact of the breach, which compromised creditor information.
Implications For The Digital Asset Industry And Upcoming Conference
These developments in Voyager Digital's bankruptcy case are set to be a topic of discussion at Benzinga's upcoming Future of Digital Assets conference on Nov. 19.
The conference will delve into the implications of such high-profile bankruptcies within the cryptocurrency sector, exploring both the financial and regulatory repercussions.
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