Voyager cannot guarantee that all customers will receive their crypto under the proposed recovery plan

After Voyager Digital filed for bankruptcy on Tuesday, the lending firm said its recovery plan was aimed at preserving customers’ assets, but did not explicitly say it would be able to return all similar funds to affected users.

In a Monday blog, Voyager said it had about $ 1.3 billion in affected users’ funds in addition to $ 650 million in “claims against Three Arrows Capital” – referring to the $ 15,250 Bitcoin (BTC) loan and $ 350 million Coin ( USDC) the company failed to repay. Under Voyager’s proposed recovery plan – subject to court approval – users may receive a combination of Voyager tokens, cryptocurrencies, “ordinary shares in the newly reorganized company” and funds from any case involving Three Arrows Capital, or 3AC.

“The exact figures will depend on what happens in the restructuring process and the recovery of 3AC assets,” the lending firm said. “The plan is subject to change, negotiations with customers and finally a vote […] We have put together a restructuring plan that will preserve customers’ assets and provide the best opportunity to maximize value. “

Travelers,

We understand how important it is to access the value in your account, and we work through this process as quickly as possible to do just that. Today’s post provides an update on customers’ cash and crypto, and the next step: (1/6)

– Voyager (@investvoyager) July 11, 2022

In addition to cryptocurrencies, Voyager said they kept funds “equal to the amount of USD in customer accounts” in a special FDIC-insured account with the Metropolitan Commercial Bank of New York. FDIC protection guarantees up to $ 250,000 per customer should the bank fail – not the lending company. Voyager added that it is “working to restore access to USD deposits,” subject to a reconciliation and fraud prevention process.

Voyager issued a 3AC default notice on June 27, later citing the company’s non-payment as one of the reasons for suspending trade, deposits, withdrawals and loyalty rewards. The lending company also announced that it had borrowed 15,000 BTC – about $ 500 million at the time – from Alameda Research, and claimed that the funds were aimed at covering losses due to 3AC.

Related: Investors apologize for potentially lost “millions” on Voyager bankruptcy

In addition to the legal solutions Voyager is exploring with 3AC’s repayment, the company said it “pursues different strategic options to evaluate the value of the stand-alone company compared to a third-party investment or sale.” Data from TradingView shows that the company’s share price has fallen more than 98% since the annual high of $ 20.35 in November 2021, reaching approximately $ 0.27 at the time of publication.