Voyager Wins Big! $450 Million FTX Settlement Paves Way for Creditor Repayment
Qadir AK30 Apr 20242 min read
In a groundbreaking turn of events, Voyager Digital has secured a momentous agreement with FTX and Alameda, effectively liberating Voyager from a staggering $450 million repayment burden. This historic deal, sealed on April 29th under the gavel of Judge John Dorsey from the United States Bankruptcy Court for the District of Delaware, aims to quash all disputes between the involved parties.
It’s a pivotal stride in Voyager’s relentless pursuit to settle its dues following its bankruptcy filing back in July 2022.
The Voyage to Freedom
The approved terms of the agreement enable the release of $5 million in escrow from Voyager and an additional $445 million involved in the Alameda Research loan repayment lawsuit to the company’s debtors. FTX has waived all rights to these funds, solidifying the settlement’s terms.
Furthermore, Voyager has secured an additional $34 million in redress from Three Arrows Capital and D&O Insurance litigations, swelling the total settlement corpus to a staggering $484 million. The ink on the agreement, finalized by Paul Hage, representing Voyager Digital and its creditors, alongside FTX restructuring officer and CEO John Ray III, on April 4th, paints a promising picture of Voyager’s earnest commitment towards compensating its creditors and building up its finances.
Restructuring Plan: Here’s a Sneak Peek!
Looking ahead, Voyager has made commendable strides in reimbursing its users, procuring approximately $20 million from Three Arrows Capital and an additional $14 million from Directors and Officers Insurance. As per a restructuring blueprint unveiled in May 2023, Voyager patrons may anticipate recouping 35.7% of their claims, either in cryptocurrency or fiat currency.
However, legal woes persisted as the U.S. Commodity Futures Trading Commission (CFTC) and the Federal Trade Commission (FTC) filed lawsuits against former Voyager CEO Stephen Ehrlich in October 2023, alleging fraudulent statements. As of the latest update, these cases remain unresolved.
In parallel, Genesis and Gemini have reached a $21 million settlement with the SEC, addressing accusations stemming from the sale of unregistered securities via the Gemini Earn program.
With this major hurdle cleared, Voyager’s path to recovery seems brighter than ever. For more information about Voyager’s restructuring plan and the latest updates, come back to Coinpedia!
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