Users of Voyager Digital will be able to recover part of their funds through Binance.US accounts,the auction winner for the assetsof the bankrupt creditor. This follows from court filings, writes Decrypt.
Partners expect the deal to close and payments to begin in March.
The onboarding period for Voyager clients onto Binance.US began last week. The platform will create new or link existing accounts ahead of claim settlements.
Affected users must provide an email address, Social Security number and date of birth. The portal’s functionality shows clients the value of their assets.
The actual amount of the restitution will be a percentage of the amount of your claim, as determined by Voyager’s rebalancing, — the statement notes.
Specific values will depend on market conditions. The creditor holds a relatively high share of altcoins that have shown weaker price dynamics compared with BTC/ETH.
3/ The chart below illustrates how the change in crypto prices impacts recovery value. Note that “VWAP” stands for Volume-Weighted Average Price. pic.twitter.com/pZwEQpXoKd
— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) January 12, 2023
Residents of Hawaii, New York, Texas and Vermont will have to wait up to six months, as Binance.US has not secured licensing from local regulators.
In the event that Binance.US does not obtain the required licensing […] within six months of signing the asset-purchase agreement, the creditor will convert such clients’ intended payments into cash and distribute them separately, — the document states.
On July 5, Voyager Digital filed for bankruptcy. The firm put total liabilities in the range of $1 billion to $10 billion.
The firm was among the creditors of the hedge fund Three Arrows Capital. The latter failed to repay debts of 15,250 BTC and 350 million USDC, so in June Voyager Digital sent it a notice of default.
In September, FTX, founded by Sam Bankman-Fried, won the auction for asset sales, offering about $1.4 billion.
Subsequently Voyagerreached a preliminary agreement with the exchange’s US unit. The deal envisaged returning to clients 72% of the value of their assets.
At the time, FTX US offered better terms than Binance.US. Media reports said that the latter’s involvement was in doubt due to “xenophobia” and national security concerns.
After FTX Groupfiled for bankruptcy on November 11, Voyager Digital announced the restart of the auction and willingness to discuss terms with potential buyers.
As reported, in the same month Binance CEO Changpeng Zhao confirmed that the company’s US unitwill participate in a new auction to acquire the creditor’s assets.
Earlier it emerged that Alameda Researchfiled suit against Voyager Digital to recover $445 million.