Voyager Digital users will be able to recover some of their funds through the accounts of Binance.US, the winner of the auction for the bankrupt lender’s assets. This follows from the documents for the court, writes Decrypt.
The partners expect the deal to close and payouts to begin in March.
The registration period for Voyager customers on Binance.US started last week. The Platform will create new or link existing accounts before resolving claims.
Affected users must provide an email address, social security number, and date of birth. The functionality of the corresponding portal demonstrates to clients the value of their assets.
“The actual amount of the refund will be a percentage of the amount of your claim, as determined by the Voyager rebalancing”, — noted in the statement.
Specific values will depend on market conditions. The lender has a relatively high percentage of altcoins that have performed worse than BTC/ETH.
3/ The chart below illustrates how the change in crypto prices impacts recovery value. Note that “VWAP” stands for Volume-Weighted Average Price. pic.twitter.com/pZwEQpXoKd
— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) January 12, 2023
Residents of the states of Hawaii, New York, Texas and Vermont will have to wait up to six months, as the exchange has not received permission to operate from local regulators.
“In the event that Binance.US does not receive the required licensing […] within six months from the date of the conclusion of the asset purchase agreement, the lender will convert the payments intended for such customers into cash and distribute them separately”, the document says.
July 5 Voyager Digital filed bankruptcy filing. The company indicated total liabilities in the range of $1 billion to $10 billion.
The firm was one of the lenders to hedge fund Three Arrows Capital. The latter was unable to repay the debt of 15,250 BTC and 350 million USDC, so Voyager Digital sent him a notice of default in June.
FTX, founded by Sam Bankman-Freed, won an asset auction in September, offering about $1.4 billion.
Voyager later reached a preliminary agreement with the US division of the exchange. The deal involved the return of 72% of the amount of their assets to the clients of the latter.
At that time, FTX US offered better terms than Binance.US. The media reported that the participation of the latter was called into question due to “xenophobia” and national security issues.
After FTX Group filed for insolvency on November 11, Voyager Digital announced that it had restarted the auction and was ready to discuss terms with potential buyers.
Recall that in the same month, Binance CEO Changpeng Zhao confirmed that the American branch of the company will take part in a new auction to buy out the lender’s assets.
Earlier it became known that Alameda Research sued Voyager Digital for $445 million.
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