Voyager is making progress in its bankruptcy proceedings. The company has managed to secure a claim of approximately $675 million from Three Arrows Capital, with its pro rata share amounting to $20.43 million. An upcoming distribution, which includes interest, is expected to represent about 25% of the original claims made by Voyager creditors.
The plan administrator foresees additional payments in the future as assets are liquidated and litigation recoveries are achieved. Furthermore, a settlement in the D&O insurance mediation is anticipated to contribute at least $14.35 million to Voyager creditors, aiming to address the financial distress caused to the company’s stakeholders. However, Voyager faces logistical challenges, with approximately 270,000 uncashed checks totaling $17 million.
The company has set an April 20, 2024, deadline for these checks, after which they will be considered unclaimed and canceled. In addition to these challenges, Voyager is dealing with the aftermath of a data breach, which compromised creditor information, further complicating the bankruptcy proceedings. Investigations are ongoing to identify the source of the breach and assess its full impact.
Voyager initially sought Chapter 11 bankruptcy protection in July 2022 amid the wider crypto credit crisis, following accusations from the CFTC about misleading clients and financial health concerns. At the time of filing for bankruptcy, Voyager disclosed liabilities ranging between $1 billion to $10 billion, underscoring the significant financial challenges that led to the need for bankruptcy protection.