Failed cryptocurrency brokerage Voyager Digital Holdings Inc. won court approval to begin winding down its operations and start repaying customers a portion of their crypto that’s been held on its platform since last year.
Judge Michael Wiles approved Voyager’s liquidation procedures Wednesday, about a month after Binance.US terminated an agreement to purchase the crypto platform and after a deal to sell itself to FTX last year fell apart. Voyager customers will get about 36% of what they’re owed but their recovery could increase if the firm succeeds in a pending dispute with FTX, according to court documents.
Failed Crypto Broker Voyager Digital Cleared to Start Repaying Customers’ Frozen Funds
As an enthusiast with expertise in cryptocurrency and financial markets, I've closely followed developments in the industry up until my last update in January 2022. My knowledge is grounded in practical experience, academic study, and continuous monitoring of trends and news within the cryptocurrency space.
Regarding the article about Voyager Digital Holdings Inc., the piece delves into several crucial concepts within the context of cryptocurrency and finance:
Cryptocurrency Brokerage and Platforms: Voyager Digital Holdings Inc. operates as a brokerage platform for cryptocurrencies, facilitating the trading and holding of digital assets for customers.
Liquidation Procedures: When a company faces insolvency or decides to cease operations, liquidation involves selling off assets to repay creditors, in this case, customers holding crypto assets on Voyager's platform.
Failed Acquisition Attempts: Mentioned are failed attempts by Binance.US and FTX to acquire Voyager, leading to the company opting for liquidation procedures.
Customer Recovery: The article highlights that customers will receive approximately 36% of what they are owed. The possibility of increased recovery hinges on a pending dispute with FTX, suggesting a potential for further reimbursem*nts if Voyager succeeds in this legal conflict.
Legal Approvals and Court Proceedings: Voyager's liquidation and repayment plans required judicial approval, which Judge Michael Wiles granted. This demonstrates the legal complexities involved when cryptocurrency firms wind down operations.
Market Impact: Such events can impact market sentiment and investor trust in cryptocurrency platforms, potentially influencing the broader cryptocurrency market.
This news piece emphasizes the importance of due diligence and the risks associated with engaging in the cryptocurrency space, underscoring the necessity for regulatory oversight and the potential vulnerabilities users face when trusting third-party platforms to hold their digital assets.
Crypto broker got bankruptcy court approval to return cash deposits. Cryptocurrency brokerage firm Voyager Digital Holdings Inc. secured approval to return $270 million in customer cash, which accounts for a small portion of investor assets that have been locked up since its bankruptcy filing last month.
Voyager, a crypto trading platform founded in 2018, was one of many digital assets firms to go bust and file for Chapter 11 bankruptcy amid a crash in crypto prices in 2022. The exchange gained court approval last May to wind down operations and pay back customers a portion of what they're owed.
From June 23, 2023, you will have 30 days to complete your withdrawal. If you don't transfer your crypto in this timeframe, you'll receive your initial recovery in U.S. dollars later, subject to market fluctuations.
Voyager announced that it will return approximately 35% of customers' cryptocurrency deposits. The approval of Voyager's liquidation plan allows for the distribution of around $1.33 billion in crypto assets to customers.
Shares of Voyager Digital have been halted following its bankruptcy. Both investors and clients will incur losses as a result of Voyager Digital's collapse.
Voyager initiated Chapter 11 bankruptcy proceedings in July 2022 due to serious events in the crypto market, such as the collapse of the Terra ecosystem in May. By May 2023, a restructuring plan proposed that Voyager customers could recoup 35.7% of their claims in either cryptocurrency or cash.
If you invested with Voyager Digital and were adversely affected, you might be eligible to join or file a class action claim. Contact us today at 305-740-1423 for a FREE CASE REVIEW with one of our experienced attorneys.
The Mavericks and minority owner Mark Cuban are the “last remaining defendants left standing” in a lawsuit involving defunct cryptocurrency platform Voyager Digital for their promotion of the company, but Cuban “may not look to settle his portion of the lawsuit,” according to Irving Mejia-Hilario of the DALLAS MORNING ...
Completing the Chapter 11 plan that the bankruptcy court approved in March 2023, Voyager issued approximately 627,000 checks worth $131 million for the initial distribution to creditors.
A FAVORABLE EXCHANGE RATE AT THE TIME OF EXCHANGE CAN RESULT IN A TAX LIABILITY. For more details, please refer to the FAQ or contact customer service at 888-824-8817. The Crypto.com Visa Card is issued and promoted by Foris MT Limited pursuant to its Visa Principal Member (Issuing) license.
Voyager is not a chartered bank or savings association. FDIC insurance does not extend to crypto assets, such as the USD Coin stored on Voyager's platform.
Yes.In the United States, cryptocurrency — on Voyager and other platforms — is subject to income and capital gains tax. This applies to transactions made before the Voyager bankruptcy filing. For more information, check out our complete guide to cryptocurrency taxes.
Voyager intends to repay customers with the same type of cryptocurrency they had in their accounts. For deposits held in unsupported cryptocurrencies that cannot be withdrawn from Voyager's platform and for Voyager's proprietary VGX token, Voyager will instead repay customers using the stablecoin USDC.
Voyager says its customers' dollars are kept in an FDIC-insured account at Metropolitan Commercial Bank in New York — however, this claim was contested by legal experts and the bank itself. The FDIC only offers protection of funds in the event of a bank's failure, not a crypto exchange.
History. In June 2022, Voyager Digital announced that Three Arrows Capital had not repaid loans totaling $666 Million. On July 1, the company suspended “trading, deposits, withdrawals and loyalty rewards” and subsequently on July 5, the company filed for Chapter 11 bankruptcy protection.
If you invested with Voyager Digital and were adversely affected, you might be eligible to join or file a class action claim. Contact us today at 305-740-1423 for a FREE CASE REVIEW with one of our experienced attorneys.
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