Voyager Digital bankruptcy administrators rubber stamp 36% partial withdrawals
The bankrupt Voyager Digital platform will open user withdrawals between June 20 and July 5.
Voyager Digital will open partial withdrawals as early as June 20, according to Voyager Digital’s bankruptcy plan administrator, Paul Hage.
Hage’s timeline showed the Voyager app would be updated on June 15 so users can view amounts due in this initial distribution of funds.
He estimated that withdrawals would go live between June 20 and July 5, enabling the removal of crypto funds within a 30-day window. After this period, fiat withdrawals will be enabled. This initial distribution will see users receive back 35.72% of their assets.
However, depending on the volume of requests, security factors, and technical limitations, withdrawal requests may take three to seven days to process, warned Hage.
Full recovery is still months ahead for creditors
Voyager Digital filed for bankruptcy on July 5, 2022, shortly after its significant debtor, Three Arrows Capital (3AC,) filed for bankruptcy.
3AC fell into difficulty when the LUNA UST crash occurred, exposing the hedge fund’s overleveraged long positions – triggering margin calls – leading to its liquidation.
Records show that 3AC owed Voyager 15,250 Bitcoin and $350 million USDC. Hage said efforts are ongoing to recover the debt.
Additionally, he stated that Voyager Digital owes FTX, and related entities, $445 million, with the issue pending final resolution. Earlier this year, Alameda sued Voyager for the return of the funds – which relates to loan repayment.
Both these issues will take time to resolve, said Hage, which will delay full recovery for Voyager users. He added:
“… as soon as the initial distribution is complete, the primary focus will shift to recovering additional assets that can be distributed to creditors through, among other things, litigation claims, and asset sales.”