On May 4, Voyager Digital updated their creditors, stating that they could expect to receive their initial cash and crypto distributions within the next few weeks. This communication comes after the previously planned acquisition by Binance US fell through on April 25. Voyager Digital filed for bankruptcy in July 2022 and halted withdrawals and deposits. The crypto lender has since been navigating the bankruptcy process to reimburse their creditors.
While Voyager Digital has faced several challenges during this process, they are making progress. The company has announced that they are finalizing their liquidation procedures, which will be filed before the plan can go into effect. There is a ten-day period during which parties can object to the plan. If no objections are filed, Voyager Digital intends to make the plan effective. However, in case of an objection, the court will hold a hearing to consider it.
Voyager Digital has confirmed that they are moving forward with their plan to reimburse creditors, but objections are still possible. Once the liquidation plan is in effect, the company is hopeful that initial distributions can begin in the coming weeks. This news has elicited mixed reactions from customers, with some expressing frustration and others applauding the progress made by the crypto lender.
Jamie Redman, the News Lead at Bitcoin.com News, notes that while some customers may feel impatient, the process is ongoing. He emphasizes that the article is for informational purposes and does not constitute investment advice.
Furthermore, it should be noted that Voyager Digital is not the first crypto lender to face bankruptcy. Recently, another decentralized finance (DeFi) protocol, Iron Finance, collapsed due to a bank run that forced them to liquidate their holdings. While DeFi is a burgeoning industry, it is not immune to volatility and bankruptcy. As the industry moves forward, it will be vital to have regulations and policies in place to address such situations.
In summary, Voyager Digital’s recent update on their liquidation procedures is a positive step in the company’s attempt to reimburse their creditors. While some customers may feel frustrated, this process takes time. The firm is confident that initial distributions will begin within the next few weeks, pending any objections. The cryptocurrency industry is dynamic and ever-changing, and it is essential to remain informed and cautious while investing.
