$450M FTX-Voyager Settlement Approved by Bankruptcy Judge
A motion has been approved by a judge, giving permission for the debtors of the now-defunct cryptocurrency exchange FTX to reach a settlement agreement of $450 million with bankrupt company Voyager Digital. The agreement, which was approved by Judge John Dorsey on April 29, allows Voyager to settle all claims with FTX as part of a plan to compensate its creditors. The agreement states that $5 million held by Voyager in escrow, along with an additional $445 million involved in a loan repayment lawsuit filed by Alameda Research, will be released to FTX’s debtors, with FTX relinquishing all rights to the funds. The settlement is one of many that Voyager has sought since filing for bankruptcy in July 2022 during a downturn in the cryptocurrency market. In April, it was reported that Voyager had received a proportional claim of around $20 million from Three Arrows Capital and approximately $14 million from Directors and Officers Insurance as part of its efforts to reimburse its users. In May 2023, a restructuring plan suggested that Voyager customers could recover 35.7% of their claims in either cryptocurrency or fiat currency. In October 2023, former Voyager CEO Stephen Ehrlich faced parallel lawsuits from the U.S. Commodity Futures Trading Commission and the Federal Trade Commission for making fraudulent statements. The cases are still ongoing.
8 thoughts on “$450M FTX-Voyager Settlement Approved by Bankruptcy Judge”
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Wow, this is a major development for the debtors! It’s good to see progress being made in settling their claims with FTX.
The debtors have been through a lot, and this settlement brings them one step closer to recovering from their losses. 💪🌟 Wishing them all the best in their financial journey. 💰🌈
The restructuring plan’s offer to reimburse claims in cryptocurrency or fiat currency is just a clever way to reduce Voyager’s liabilities. 😒
Voyager’s customers deserve better than just 35.7% recovery of their claims. This settlement is a letdown!
I can’t imagine how relieved the debtors must be right now. This settlement brings hope and a fresh start to their financial situation.
The debtors’ patience and perseverance are paying off with this approved motion. It’s a hopeful step towards resolving their financial woes.
This settlement agreement brings hope for others affected by the cryptocurrency market downturn. Let’s hope for similar resolutions in the future.
It’s disappointing to see the legal system approving such an agreement that favors the debtor and not the creditors. 😔