Voyager Provides Update on Recovery Plan
Under the recovery plan, customers would receive a pro-rata share of Voyager assets, which may not satisfy everyone.
- Voyager Digital has released an update on its plans to return account balances to its users.
- The company says that it has $1.3 billion of cryptocurrency and $650 million in claims against 3AC to distribute.
- Voyager did not say exactly how much users will receive, but added that users will be able to vote on the plan.
Failing cryptocurrency lending company Voyager Digital announced a recovery plan for users in a blog post.
Voyager Will Pay out Shares of Four Different Assets
Following its earlier decision to suspend withdrawals, Voyager now says that it plans to return funds to users.
“We are working to restore access to USD deposits, which belong to customers and will go back to those same customers,” the company wrote in a blog post dated Jul. 11.
Voyager explained that it is holding customer funds in a For Benefit of Customers (FCB) account at the Metropolitan Commercial Bank of New York. Those funds will be available following a “reconciliation and fraud prevention process.”
Voyager did not say exactly how much money customers will receive. However, it did say that it has $1.3 billion of cryptocurrency and over $650 million in claims against Three Arrows Capital.
Customers will receive a pro-rata share of four different assets: cryptocurrency, proceeds from the 3AC recovery, common shares in the reorganized company, and existing Voyager’s tokens.
Furthermore, customers are insured for up to $250,000 under Federal Deposit Insurance Corporation (FDIC) insurance.
Not All Customers Are Satisfied
Voyager suspended withdrawals on Jul. 1 and filed for bankruptcy days later. While the recovery plan is a step toward paying back customers, not everyone will be satisfied.
Under the plan, users will receive only a share of Voyager’s assets. This likely means that some users will receive less than their account balance—though it is ambiguous as to whether the firm intends to restore standard withdrawals as well.
Additionally, reports concerning Voyager’s FDIC policy have caused controversy. While the firm initially advertised overarching FDIC insurance, recent statements contend that this insurance only applies in the event of Metropolitan Commercial Bank’s failure—not Voyager’s failure. Today’s update confirmed this.
Dissatisfied customers may take other actions to recover their money. A law firm called Siskinds LLP announced a class action lawsuit today on behalf of Voyager users.
Voyager also suggests that its recovery plan is not necessarily final. Customers can vote on the proposal outlined today.