Key Takeaways:
- Judge John Dorsey approved a $450 million settlement deal between FTX and Voyager Digital in the District of Delaware’s United States Bankruptcy Court, resolving all claims between the two.
- The settlement includes the release of $450 million from escrow, comprising a $5 million balance and $445 million from a loan repayment issue with Alameda Research, which will go to Voyager’s creditors.
- Despite ongoing legal challenges faced by Voyager’s former CEO for alleged fraudulent statements, this settlement advances Voyager’s restructuring efforts, aiming to reimburse customers with up to 35.7% of their claims.
A recent court decision has authorized a substantial settlement agreement involving two major entities in the cryptocurrency sector, defunct exchange FTX and bankrupt firm Voyager Digital.
On April 29, in the District of Delaware’s United States Bankruptcy Court, Judge John Dorsey signed off on a $450-million settlement deal.
ICYMI: 🇺🇸 U.S. bankruptcy judge allowed FTX debtors to finalize a $450 million settlement with Voyager Digital
— BlockNews.com (@blocknewsdotcom) April 29, 2024
This agreement allows Voyager Digital to resolve all claims against FTX, integral to a broader plan aimed at compensating Voyager’s creditors.
The terms stipulate that $5 million currently held in escrow will be joined by an additional $445 million, which pertains to a loan repayment dispute with Alameda Research, and released to Voyager’s debtors.
Furthermore, FTX has agreed to “relinquish any and all rights” to the $450 million in question, fully transferring the claim to Voyager.
The settlement was officially agreed upon by key representatives from both companies.
Paul Hage, representing Voyager Digital and its debtors, and John Ray III, the restructuring officer and CEO of FTX as of April 4, both endorsed the deal.
This settlement is a pivotal development for Voyager, which has been actively seeking settlements since declaring bankruptcy in July 2022 during a downturn in the cryptocurrency market.
Voyager Digital Holdings filed for Chapter 11 Bankruptcy July 5th 2022 pic.twitter.com/gWoUJXeBDb
— Stephan Livera (@stephanlivera) July 6, 2022
Voyager’s efforts to reimburse its users have included obtaining a $20 million proportionate claim from Three Arrows Capital and about $14 million from Directors and Officers Insurance.
A restructuring plan outlined in May 2023 suggested that Voyager customers might recover 35.7% of their claims, either in crypto or fiat currency.
These legal actions highlight the continuing complexities and regulatory scrutiny within the cryptocurrency industry.
This development marks a significant chapter in the saga of cryptocurrency exchanges and their navigation through legal and financial challenges.
About The Author
Fleming Airunugba, a seasoned Web3 and crypto content expert, leverages his deep understanding of blockchain technology to bring the latest and most impactful news to the crypto community.
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