CRYPTO-BANKRUPTCY UPDATE: Voyager Chapter 11 Liquidation Plan Approved After Binance.US Backs Out of Proposed Sale

May 22, 2023
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By: Michael L. Moskowitz, Esq. and Melissa A. Guseynov, Esq. 

Over the course of the last ten months, we have reported on the tumultuous chapter 11 journey of Voyager Digital Holdings Inc. (“Voyager”). As recently reported, after the proposed sale of Voyager’s assets to Binance.US in bankruptcy collapsed, it was forced to pivot to a liquidation of its assets.

On May 17, 2023, the Bankruptcy Court for the Southern District of New York approved the plan of liquidation so that Voyager may begin winding down and distributing its assets to creditors. In that respect, customers can expect to receive a recovery of approximately 35% of their cryptocurrency deposits, either in crypto through the Voyager app or in cash after thirty days. Creditors’ recovery may increase based on whether Voyager is successful in litigation against FTX/Alameda Research. We will continue to follow the liquidation and provide clients and colleagues with updates.

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DISCLAIMER: This summary is not legal advice and does not create any attorney-client relationship. This summary does not provide a definitive legal opinion for any factual situation. Before the firm can provide legal advice or opinion to any person or entity, the specific facts at issue must be reviewed by the firm. Before an attorney-client relationship is formed, the firm must have a signed engagement letter with a client setting forth the Firm’s scope and terms of representation. The information contained herein is based upon the law at the time of publication.

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