Voyager Customers Could Recover 72% of Frozen Crypto Under FTX Deal
The plan is tentative at this stage and will not be finalized until it receives approval from Voyager's creditors and that the bankruptcy payment plan will not have been approved by the judge.
New
Clients of bankrupt crypto lender Voyager Digital may be able to recover 72% of their account value under a tentative deal with FTX US, according to court documents.
However, U.S. Bankruptcy Judge Michael Wiles, in a hearing, said the tentative sale would not be final until it received approval from Voyager's creditors and he had approved the bankruptcy payment plan, stating at the hearing:
"If the plan fails, no part of this agreement will survive."
There is also the inclusion of a clause called "exemption escrow", which allows Voyager to cancel the agreement with FTX if offers are presented that offer a better outcome for creditors.
The clause is often included in bankruptcy cases, allowing businesses to consider higher offers until the sale is finalized to ensure creditors get the best deal possible.
Voyager previously hinted that its customers could eventually switch to the FTX platform after the exchange secured the winning bid on September 27 at a valuation of around $1.4 billion after a process of two-week tender.
FTX's interim plan would see all senior claims paid in full and allow other account holders to recover approximately 72% of the value of their accounts, which were
The plan is tentative at this stage and will not be finalized until it receives approval from Voyager's creditors and that the bankruptcy payment plan will not have been approved by the judge.
New
Clients of bankrupt crypto lender Voyager Digital may be able to recover 72% of their account value under a tentative deal with FTX US, according to court documents.
However, U.S. Bankruptcy Judge Michael Wiles, in a hearing, said the tentative sale would not be final until it received approval from Voyager's creditors and he had approved the bankruptcy payment plan, stating at the hearing:
"If the plan fails, no part of this agreement will survive."
There is also the inclusion of a clause called "exemption escrow", which allows Voyager to cancel the agreement with FTX if offers are presented that offer a better outcome for creditors.
The clause is often included in bankruptcy cases, allowing businesses to consider higher offers until the sale is finalized to ensure creditors get the best deal possible.
Voyager previously hinted that its customers could eventually switch to the FTX platform after the exchange secured the winning bid on September 27 at a valuation of around $1.4 billion after a process of two-week tender.
FTX's interim plan would see all senior claims paid in full and allow other account holders to recover approximately 72% of the value of their accounts, which were
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