Voyager filed the procedures with the Bankruptcy Court detailing how it intends to execute the company’s chapter 11 plan and provide initial recoveries in crypto to customers through the Voyager app. Alternatively, customers may choose to receive their initial recoveries in cash after the 30-day crypto withdrawal period has ended.
This blog provides important information about the initial return of value and next steps. Please read it carefully, including the Q&A portion at the end. The Bankruptcy Court filing is available here.
Return of Value
The estate has $1.334 billion in assets which equates to 75.68% of the aggregate value of customer claims against Voyager’s estate. Customers will receive an initial recovery estimated to be 35.72% of their claim amount due to certain holdbacks. The chart below outlines how this percentage is calculated.
Depending upon resolution of the FTX/Alameda preference claim dispute, the success of any additional claims brought by the Voyager Plan Administrator against third parties, as well as any recovery by the Voyager estate as a creditor in the Three Arrows Capital liquidation, customers may receive additional recoveries in the future. Subsequent recoveries can be made in either cash or crypto at the Plan Administrator’s discretion.
Choice of Crypto or Cash for the Initial Recovery
You may choose either to take your initial recovery in crypto through the Voyager platform or to wait until the crypto withdrawal period is over to receive your initial recovery in U.S. dollars.
To receive your initial recovery in crypto, once access to the Voyager app is made available, you will have 30 days to login and transfer supported crypto from your Voyager account to a designated wallet address (whether on another U.S.-based platform or wallet). Holders of certain unsupported crypto coins (i.e., cryptocurrency that cannot be transferred off the Voyager platform) and VGX will receive a pro rata amount of USDC in lieu of those specific coins, and that USDC can then be transferred off the platform.
To receive your initial recovery solely in U.S. dollars you do not need to take any action. Following the close of the 30-day crypto withdrawal window, your account will be liquidated and you will receive U.S. dollars by either check or possibly ACH withdrawal.
Once the plan is effective, we will provide more information on next steps, including when the 30-day window will be opened.
Our restructuring information line remains available at +1 (855) 473-8665 (toll-free in the U.S.) or +1 (949) 271 6507 (for parties outside the U.S.), and information can also be found on our case website at https://cases.stretto.com/Voyager.
QUESTIONS AND ANSWERS
What is the status of Voyager’s chapter 11 plan? When will value be returned?
Voyager filed its liquidation procedures with the bankruptcy court, outlining the steps that it intends to take to return value to customers. Interested parties will have 10 days to object to the liquidation procedures. During that period, Voyager is preparing to execute the plan and directly send crypto and cash to customers. We are making every effort to open the platform as quickly as possible once the liquidation procedures are approved.
How much value will be returned?
The initial recovery is estimated to be 35.72% of a customer’s claim amount. This is an estimate and the actual recovery percentage may materially differ. Initial recoveries will be in-kind for supported coins and USDC for unsupported coins and VGX, or customers may alternatively receive cash, as outlined above.
Depending upon resolution of the FTX/Alameda preference claim dispute, the success of any additional claims brought by the Voyager Plan Administrator against third parties, as well as any recovery by the Voyager estate as a creditor in the Three Arrows Capital liquidation, customers may receive additional recoveries in the future.
What coins does the Voyager platform support?
The chart below includes all supported coins, which can be transferred off the Voyager platform in kind.
What coins does the Voyager platform not support for transfer?
The chart below includes all unsupported coins, which will be liquidated and provided to customers in USDC, for those who choose to receive value in crypto.
What happens to VGX?
Holders of VGX will receive USDC in lieu of that coin (or cash if preferred).
I want to receive my initial recovery in crypto. What should I do?
If you prefer your initial recovery in crypto, once access to the Voyager platform is made available, you will have 30 days to login and transfer supported crypto from your Voyager account to a designated wallet address (whether on another U.S.-based platform or wallet). Holders of certain unsupported crypto coins (i.e., cryptocurrency that cannot be transferred off the Voyager platform) and VGX will receive USDC in lieu of those specific coins.
I want to receive my recovery solely in U.S. dollars. What should I do?
To receive your entire initial recovery solely in U.S. dollars, you do not need to take any action during the 30-day window. Following that, we will provide updates on how to receive your cash.
Why can’t I get all my value returned at the same time?
Voyager can’t return all value at the same time because it is required to hold back certain amounts including the amount of FTX/Alameda’s alleged preference claim against Voyager. These funds will be held until the FTX/Alameda preference dispute is resolved. A successful outcome in the FTX/Alameda preference dispute would result in some or all of these funds being paid to customers in subsequent recoveries.
How long will the Voyager app and website be operational?
Voyager will open customer access to the app for a period of 30 days, during which time customers will be able to transfer their initial crypto recoveries off the platform to a designated wallet address (whether on another U.S.-based platform or wallet). If customers do not login during this time to transfer their initial crypto recoveries off the platform, it will be converted to U.S. dollars and provided after the 30-day crypto withdrawal window closes.
Is Voyager still pursuing its claims against Three Arrows Capital (3AC)?
Yes. If Voyager receives a recovery on account of claims against 3AC, customers may receive additional recoveries in cash or crypto in the future.
Is Binance.US involved in the toggle option?
No.
Why didn’t Voyager open the platform for recoveries earlier?
Voyager is following the Chapter 11 plan approved by creditors and the Court, which contemplated the transaction with Binance.US and a toggle to the liquidation transaction if the Binance.US transaction did not close. After receiving a notice of termination of the asset purchase agreement from Binance.US, Voyager is now moving swiftly to return value to customers directly.
What happens to customer information that was provided to Binance.US?
Under the terms of the asset purchase agreement, Binance.US is required to destroy all customer information that it has received and permanently close and remove any accounts established with Voyager customer information.
Once the Voyager platform opens, can I leave my crypto and U.S. dollars there?
No. Since the window for transfers will close 30 days following the opening of the Voyager platform, you must transfer supported crypto from your Voyager account to a designated wallet address (whether on another U.S.-based platform or wallet) within that period. If you do not transfer crypto off of the Voyager platform during the 30-day window, you will receive your initial recovery in U.S. dollars.
How long will I have to withdraw any crypto from the Voyager platform once it reopens?
The window for transfers will close 30 days following the reopening of the Voyager platform. We will alert you when we have established the window in which the platform will be available for crypto transfers.
How will I receive any U.S. dollar recoveries?
Initial U.S. dollar recoveries will be made either by check, sent to the address listed on your Voyager account, or possibly by ACH.
Can I sell my crypto directly from the Voyager platform?
No. You must transfer crypto to another designated wallet address (whether on another U.S.-based platform or wallet) in order to trade or sell it.
