Voyager has raised $484 million to pay back its creditors

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Voyager, a bankrupt company, has gotten $484 million to pay back its creditors. This money covers about 25% of what the creditors are owed. They plan to give this money out soon.

Voyager Digital, which deals with cryptocurrency, has taken a big step in paying off its debts. It got $484 million from settlements with FTX, Three Arrows Capital (3AC), and through insurance claims. This is a big deal for the company as it tries to get back on its feet and pay back its creditors.

On April 9, Voyager told the Bankruptcy Court in New York that it got most of the money, about $450 million, from settling with FTX. Voyager had to declare bankruptcy in July 2022 because the cryptocurrency market was doing poorly, partly due to the Terra ecosystem falling apart in May.

In October 2023, the U.S. government sued the former CEO of Voyager, Stephen Ehrlich, for lying. This settlement money, including some extra for interest, makes up about 25% of the total money Voyager owes its creditors. They plan to start giving this money out soon.

Voyager also has a lawsuit going with Three Arrows Capital. They hope to get about $675 million from it. So far, they have $20.43 million from an early part of this lawsuit.

They expect to give out more money in the next few years as they sell assets and settle more lawsuits. A mediation with insurance will also bring at least $14.35 million for the creditors.

Voyager’s path to fixing its finances includes dealing with operational issues, like many checks that haven’t been cashed. About 270,000 checks, worth $17 million in total, haven’t been cashed. Most of these checks are for less than $25. Voyager has given until April 20 for these checks to be cashed, or they won’t be valid anymore.

Voyager is also sorting out problems from a data breach at FTX. They’re looking into where it came from and how it affected creditor information.

By May 2023, Voyager had a plan for customers to get back 35.7% of their money, either in cryptocurrency or cash. In November 2023, Voyager settled with the FTC for $1.65 billion to help its customers.

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