Voyager Digital is getting ready to restore its app and enable user withdrawals.
The withdrawal period would begin between June 20 and July 5.
Nearly a year after filing for Chapter 11 bankruptcy, cryptocurrency brokerage Voyager Digital is getting ready to restore its app and enable users to finally withdraw their funds.
In a court filing dated June 14, Paul Hage, administrator of Voyager’s bankruptcy plan, stated that the withdrawal period would begin between June 20 and July 5. He also said that the Voyager app will be updated around June 15 to display the amount available for withdrawal.
After 30 days, clients may withdraw cryptocurrency through the Voyager app or get a cash payout, both of which are part of the bankruptcy plan that was first authorized by the court on May 17.
Recovering Assets Still Underway
Although the first distribution permits just over 35% of customer funds to be withdrawn, Hage mentioned in the filing that bankrupt crypto hedge fund Three Arrows Capital still needs to pay Voyager $650 million, so “the primary focus will shift to recovering additional assets that can be distributed to creditors” after the initial distribution is completed.
Creditors may also be able to access an additional $445 million in customer cash if and when Alameda Research’s preference claim against Voyager is resolved, which is not anticipated to occur until at least the middle of September 2023.
Voyager first filed for bankruptcy on July 5. Two previous bankruptcy plan proposals were presented, but both plans were rejected.
The first was supposed to go to FTX US in the United States, but when FTX filed for bankruptcy, the $1.4 billion contract fell through. Following that, Binance and the company struck a $1 billion dollar transaction that also could not go through.