• Voyager Digital is proceeding with its direct distribution model and has unveiled a compensation plan for customers.
• The offer significantly pales in comparison to what customers would have gotten with the Binance.US deal.
• Voyager Digital has proposed an initial recovery plan that includes a 30-day window for crypto withdrawals, after which all other payments will be made in cash after liquidating customer accounts.
Voyager Digital Proposes Initial Recovery Plan
Voyager Digital is proceeding with its direct distribution model and has unveiled a compensation plan for customers as bankruptcy proceedings continue. As part of the proposed initial recovery plan, customers would receive 35.72% of their holdings with the firm, significantly less than what they had anticipated as part of the failed Binance.US acquisition deal. Additionally, there will be a 30-day window for crypto withdrawals, after which all other payments will be made in cash after liquidating customer accounts.
Binance US Deal
The Binance US deal would have seen users receive 73% of their holdings from the assets of Voyager Digital; however, Binance pulled out at the last minute in April 2021 and blindsided all involved parties. Despite significant pushback from regulators, the court had just approved the crypto exchange’s planned purchase of Voyager assets when it decided to rescind its offer.
Assets Valued at $1.334 Billion
Voyager claims that its current assets worth $1.334 billion can cover up to 75.68% of customer holdings; however, an approximate $445 million is currently in dispute with FTX and Alameda and therefore not accessible for distribution to customers yet.. To cover winding down costs and tax claims, Voyager is holding back $259.6 million from these funds as well
38 Cryptocurrencies Not Supported
The team also revealed that 38 cryptocurrencies will not be supported for transfer – including AVAX, ALGO, LUNA and LUNC – which will instead be liquidated and made available for withdrawal in USDC currency only..
Once the plan is effective, Voyager stated it will provide more information on next steps including when this 30-day window will open so customers can begin withdrawing funds from their accounts