Voyager promises to return funds to creditors despite Binance hurdle

Customers of the bankrupt crypto broker Voyager may be getting their money trapped in the platform in the coming weeks, shortly after Binance.US pulled out of an initial deal to purchase Voyager’s assets. 

The Voyager Official Committee of Unsecured Creditors (UCC) said that Voyager could start disbursing funds to creditors “within the next few weeks”, as both the UCC and the bankrupt crypto broker are finalizing liquidation procedures. 

According to the UCC, liquidation procedures must first be filed, with filing expected to happen on May 5, 2023. After filing, parties have ten days to make objections; if none is made, Voyager is looking to move ahead with its plan. However, if there are objections to the liquidation procedures, there will be a hearing where the court will have to weigh the objections before the plan can take effect.

As part of Voyager’s reorganization plan, the distressed cryptocurrency broker could “toggle to a self-liquidation” if the deal with Binance.US fails or the crypto broker decides not to proceed with the asset acquisition. 

As previously reported by crypto.news, Binance.US, the American subsidiary of the international crypto exchange giant Binance, pulled the plug on a $1 billion deal to purchase Voyager’s assets. 

While Voyager described the termination as “disappointing”, Binance.US mentioned the regulatory hurdles experienced in the United States without giving a direct reason for its action. FTX.US formerly won a bid to purchase Voyager’s assets. However, the takeover process fell through following the collapse of its international entity, FTX.