Crypto firm Voyager Digital ensures creditor compensation with secured funds

Voyager Digital and its creditors have taken a crucial step forward in a development that is massive for Voyager Digital. By negotiating various settlements, Voyager Digital has obtained $484.35 million altogether in efforts Voyager has been doing in their attempt for rehabilitation of the trade company as they have filed for bankruptcy. The secured amount including interest, as estimated, is around 25% of accepted claims coming from Voyager creditors and these distributions are expected to start in the near future.

Voyager Digital landmark recovery through settlement  and assets recovery

The progress firm has made in asset recovery from FTX, a default of 3AC, and through unveiling Directors and Officers (D&O) insurance have led to the momentous financial recovery. This is kind of a milestone on the way of the company of “compensation” of creditors for the reasons of bankruptcy and the creation of financial stability afterward.

The settlement as per the report incorporates the deliverance of the whole $445 million foreseen amount over to Voyager, in conjunction with a $5 million deposit being held originally in an escrow during the bankruptcy sale procedure. 

The Agreement involving the two parties terminates and resolves all matters including the release of all claims against each other and the stoppage of the FTX bankruptcy adversary proceeding.

In addition to boosting creditors’ salaries pool, Voyager has settled the D&O Insurance which implies under the curator for the Wind-Down Debtor $14.35 will be paid as creditors benefit. Furthermore, it is reasonable to expect that formal settlements such as the one Voyager proposed are generally aimed at gaining leeway in pursuing claims against insurers with respect to actions of insiders, including those concerning Three Arrows Capital and use of pledged funds for additional insurance coverage.

Creditor repayment efforts with Three Arrows Capital claim and distribution strategy

On the other hand the settlements are not the only advancement made by Voyager Digital as it has reached a secured claim of around $677.47 million in the Three Arrows Capital bankruptcy proceeding. 

Three Arrows Capital will distribute their capital to a pro rata share in the initial distribution amounting to $20.43M, being an additional contribution to the creditors that will be used for Voyager’s clients.

As Voyager has carried out its planned initial distribution phase its checks have been sent to almost 630,000 account owners without in-kind distribution participation as well as to $130 million creditors. Voyager, having 270,000 of created checks still uncashed, advices its creditors to deposit somewhere before the final deadline is marked and get a reissued check if they don’t want their assets unclaimed.

Securing creditors’ trust and enhancing security

Paul R. Hage, in his role of Plan Administrator, is making a point to ensure the creditors of Voyager can depend on this controlled and meticulous process of winding down their business endeavors. 

In addition, the report raised the concern about the continuing investigation about the data breach which is, on the other hand, an evidence of the prioritization of security and avoidance of further money-wasting problems among the management. 

Voyager reminds that all expiring distributions will be made in USD via check, and creditors are suggested making payments not through any personal account information transmission within any communication.

The structured settlement so comprehensively addresses how to settle the Company’s debt and the financial obligations incorporated in that structured settlement constitute the basis for resumption of normal operations and fulfillment of commitments to its creditors. 

A steady flow of updates and reports showing the company’s activity and development during the process of liquidation will be made available to interested parties in the following weeks.