Ftx-Voyager Settlement: Judge Gives the Green Light to $450M Deal, Spelling Relief for Voyager
The post Ftx-Voyager Settlement: Judge Gives the Green Light to $450M Deal, Spelling Relief for Voyager appeared first on Coinpedia Fintech News
In a historic development, Voyager Digital has reached a crucial settlement with FTX and Alameda, resulting in the release of Voyager from a hefty $450 million repayment obligation. This monumental agreement on April 29th, sanctioned by Judge John Dorsey of the United States Bankruptcy Court for the District of Delaware, aims to settle all claims between the two parties. The approval is a step forward in Voyager’s ongoing efforts to repay the creditors following its bankruptcy filing in July 2022.
Voyager’s $484M Windfall, A Step Closer to Recovery
The approved terms of the agreement enable the release of $5 million in escrow from Voyager and an additional $445 million involved in the Alameda Research loan repayment lawsuit to the company’s debtors. FTX has waived all rights to these funds, solidifying the settlement’s terms.
Moreover, Voyager has secured an extra $34 million in compensation from Three Arrows Capital and D&O Insurance lawsuits, bringing the total settlement amount to $484 million. Paul Hage, the attorney representing Voyager Digital and its debtors, along with FTX restructuring officer and CEO John Ray III, finalized the deal on April 4. This is a sign of progress in Voyager’s commitment to compensating creditors and stabilizing its financial position.
Sneak Peak to Restructuring Plan and Legal Tango
Moving forward, In April, Voyager made efforts to reimbursing users, securing approximately $20 million from Three Arrows Capital and around $14 million from Directors and Officers Insurance. According to a restructuring plan proposed in May 2023, Voyager customers may expect to recover 35.7% of their claims in cryptocurrency or fiat currency.
However, legal woes persisted as the U.S. Commodity Futures Trading Commission (CFTC) and the Federal Trade Commission (FTC) filed lawsuits against former Voyager CEO Stephen Ehrlich in October 2023, alleging fraudulent statements. As of the latest update, these cases remain unresolved.
Additionally, Genesis and Gemini settled a lawsuit with the SEC for $21 million, addressing charges related to the sale of unregistered securities through the Gemini Earn program.
Amid this legal tango, Voyager’s settlement with FTX marks a significant milestone in its journey toward financial recovery and creditor compensation.
Read More
Ftx-Voyager Settlement: Judge Gives the Green Light to $450M Deal, Spelling Relief for Voyager
The post Ftx-Voyager Settlement: Judge Gives the Green Light to $450M Deal, Spelling Relief for Voyager appeared first on Coinpedia Fintech News
In a historic development, Voyager Digital has reached a crucial settlement with FTX and Alameda, resulting in the release of Voyager from a hefty $450 million repayment obligation. This monumental agreement on April 29th, sanctioned by Judge John Dorsey of the United States Bankruptcy Court for the District of Delaware, aims to settle all claims between the two parties. The approval is a step forward in Voyager’s ongoing efforts to repay the creditors following its bankruptcy filing in July 2022.
Voyager’s $484M Windfall, A Step Closer to Recovery
The approved terms of the agreement enable the release of $5 million in escrow from Voyager and an additional $445 million involved in the Alameda Research loan repayment lawsuit to the company’s debtors. FTX has waived all rights to these funds, solidifying the settlement’s terms.
Moreover, Voyager has secured an extra $34 million in compensation from Three Arrows Capital and D&O Insurance lawsuits, bringing the total settlement amount to $484 million. Paul Hage, the attorney representing Voyager Digital and its debtors, along with FTX restructuring officer and CEO John Ray III, finalized the deal on April 4. This is a sign of progress in Voyager’s commitment to compensating creditors and stabilizing its financial position.
Sneak Peak to Restructuring Plan and Legal Tango
Moving forward, In April, Voyager made efforts to reimbursing users, securing approximately $20 million from Three Arrows Capital and around $14 million from Directors and Officers Insurance. According to a restructuring plan proposed in May 2023, Voyager customers may expect to recover 35.7% of their claims in cryptocurrency or fiat currency.
However, legal woes persisted as the U.S. Commodity Futures Trading Commission (CFTC) and the Federal Trade Commission (FTC) filed lawsuits against former Voyager CEO Stephen Ehrlich in October 2023, alleging fraudulent statements. As of the latest update, these cases remain unresolved.
Additionally, Genesis and Gemini settled a lawsuit with the SEC for $21 million, addressing charges related to the sale of unregistered securities through the Gemini Earn program.
Amid this legal tango, Voyager’s settlement with FTX marks a significant milestone in its journey toward financial recovery and creditor compensation.
Read More