To repay creditors, Voyager Digital secures $484 million from FTX, 3AC, and D&O, addressing operational and financial challenges.
Voyager Digital has disclosed significant advancements in its endeavors to remunerate creditors after its bankruptcy. Settlements with FTX, Three Arrows Capital (3AC), and Directors and Officers (D&O) insurance claims have yielded $484.35 million for the organization. This represents a noteworthy milestone in the company’s financial recovery and creditor remuneration.
Voyager Recovery Initiative
Aside from legal actions, Voyager Digital’s recovery fund has implemented a multifaceted strategy that has utilized a variety of sources. About $450 million of the recovery is derived from a settlement with the cryptocurrency exchange FTX.
Assuming interest, this resolution accounts for roughly 25 percent of the total claims made by Voyager’s creditors. Distribution of the funds is anticipated to occur in the near future.
Approximately $675 million in additional recoveries to the recovery fund comprises a significant portion of the ongoing litigation against Three Arrows Capital (3AC).
Voyager has already obtained $20.43 million in anticipation of future payments as assets are liquidated and litigation recoveries are realized. This represents its portion of the proceeds from the liquidation of assets.
Additionally, a mediation agreement with D&O Insurance has resulted in a minimum commitment of $14.35 million to the creditor, thereby fortifying the creditor’s funds.
Confronting Operational Obstacles
As Voyager navigates the course of its financial recovery, the organization faces operational obstacles, one of which comprises a substantial number of uncashed checks. An estimated 270,000 checks, totaling $17 million, remained uncashed, most of which were for less than $25.
Voyager has established a deadline of April 20, 2024, failing which these checks shall be deemed null and void as unclaimed. This demonstrates a proactive stance in addressing this logistical dilemma.
The challenges faced by the organization are further exacerbated by the consequences of a data breach that exposed creditor data. As a result, continuous inquiries involving external cybersecurity specialists aid in determining the origin and complete extent of the intrusion and promptly address the corresponding vulnerabilities.
