Voyager customers get access to withdraw funds

abdelaziz Fathi

Bankrupt crypto lender Voyager is gearing up to allow its customers to withdraw their funds, almost a year after filing for Chapter 11 bankruptcy. Starting from next week, Voyager app will undergo an update to display the available withdrawal amount for each customer.

According to the bankruptcy plan administrator, Paul Hage, in a court filing on June 14, the withdrawal period would start between June 20 and July 5. Starting this Thursday, Voyager customers will be granted the opportunity to complete necessary forms and get a glimpse of the initial withdrawal amount they can expect.

Having received court approval on May 17, the bankruptcy plan will allow customers to initially recover 35.72% of their claims. The ruling allows the company to proceed with returning approximately $1.33 billion worth of crypto assets to its customers. Additionally, it marks the conclusion of Voyager’s efforts to reorganize under Chapter 11 bankruptcy.

This news comes as a relief to investors who have had their funds held on various platforms since the company’s bankruptcy. The crypto lender initiates the process of winding down its operations as acquisition deals by FTX US and, more recently, Binance US, have fallen through.

Voyager plans to reimburse its customers by returning the same type of cryptocurrency that was held in their accounts, dismissing speculation suggesting that it would consider an alternative payment method. Specifically, major coins, including Aave (AAVE), Ethereum (ETH), Bitcoin Cash (BCH), and 65 others, will not be liquidated but rather returned to customers in digital form.

However, for deposits consisting of unsupported cryptocurrencies that cannot be withdrawn from Voyager’s platform, as well as for Voyager’s proprietary VGX token, customers will be repaid using the stablecoin USDC. This approach ensures that customers receive value equivalent to their original holdings, even for assets that cannot be directly withdrawn.

Meanwhile, the ultimate recovery prospects for Voyager customers are closely tied to the resolution of the litigation involving FTX, as well as the amount of recovery that FTX offers its own creditors.

FTX’s failed trading arm, Alameda Research, asked a court to claw back $445 million from Voyager Digital, which it said SBF’s empire paid to the crypto lender before collapsing into bankruptcy.

Alameda Research seeks to recover those loan payments from the troubled digital asset manager since they were made close to FTX’s bankruptcy filing. Under certain circumstances, federal laws consider such payments eligible to be ‘recoverable’ and thus could be used to repay FTX’s own creditors.

According to court filings, if Voyager achieves a successful outcome in the FTX litigation, customers can expect a recovery rate of approximately 63.74%.

Read this next

Retail FX

Cerus Markets launches MT5 with exclusive Crypto vs TradFi offering

“The introduction of MT5 is a significant milestone for Cerus Markets and our valued clients. We are constantly seeking ways to enrich our platform and empower our traders with more advanced tools and opportunities. MT5 aligns perfectly with our mission to bridge the gap between cryptocurrency and traditional financial markets.”


Ouinex taps Netdania to build institutional-grade crypto trading platform

Ouinex intends to always bring the best of TradFi electronic trading infrastructure to Web3 including innovative universal cross-margining capabilities so that users can trade TradeFi instruments by using their crypto holdings as margin.

Retail FX

BDSwiss Elevates Traders’ Experience with Advanced Trading Tools

In the fast-paced world of financial markets, having access to advanced trading tools and educational resources is crucial for traders aiming to stay ahead of the curve.

Market News

Gold & Silver rally, made in China

Gold prices correlate with the US bond market, and the US Dollar influences the Gold/Silver ratio. Chinese market premiums for Gold and Silver suggest continued uptrends. Inflation-adjusted peaks indicate current prices are not overly expensive, implying potential for further gains.

Market News

Japan’s Monetary Policy and FX Intervention: Key Takeaways from the G20 Meeting

At the G20, BoJ President Kanda and Finance Minister Suzuki emphasized stable exchange rates and cautious FX intervention, signaling imminent action. Softer US inflation data and potential BoJ rate hikes are impacting USD/JPY


Top 3 Cryptos of 2024: BlockDAG’s $1 Prediction, Immutable’s Remarkable Price Increase, and Solana’s Promising Future

Explore pivotal changes in the cryptocurrency market through our analysis of Solana, Immutable, and BlockDAG. Explore how BlockDAG raised $34.7M in its presale with advanced technologies.


UK bank Kroo bans crypto transactions, warns account closure

London-based digital bank Kroo has imposed a ban on cryptocurrency transactions, another blow for crypto traders ‎who recently saw a sizable number of banks deciding not to ‎finance the wobbly asset class.‎


MoonPay onboards Gucci, Puma, and Mastercard to Web3 Tools

Blockchain payments infrastructure firm MoonPay has unveiled a new platform to simplify the Web3 experience for brands and consumers. The platform, dubbed Web3 Tools, helps brands provide a less complex Web3 journey.


BlockDAG’s Keynote Video Drives $34.7M in Presales, Gaining Traction Among Solana (SOL) Investors and Litecoin Enthusiasts

Discover BlockDAG’s leadership in cryptocurrency, attracting Solana (SOL) investors and Litecoin enthusiasts with its strong growth prospects and groundbreaking mining technology.