Bankrupt crypto broker Voyager Digital (OTC:VYGVQ) will initiate the return of funds stuck on the platform to creditors next week, according to the liquidation procedures filed with the U.S. Bankruptcy Court for the Southern District of New York.
The filing noted that the Voyager app will be updated on June 15, enabling creditors to access and view the forms and amounts allocated for their initial distribution.
Furthermore, the Voyager app is set to reopen between June 20, 2023, and July 5, 2023, facilitating the withdrawal of cryptocurrencies by creditors for a period of 30 days.
The Plan Administrator urged creditors to "remove their initial distribution from the Voyager app in-kind as soon as possible" due to the unpredictable nature of the crypto industry.
According to the filing, all creditors are slated to receive a 35.72% initial distribution as specified under the Plan and the Liquidation Procedures.
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However, the filing clarifies that the distributions may not be instant, stating that "the initial distributions of cryptocurrency will be made to creditors between three to seven calendar days after a withdrawal request is submitted on the Voyager platform."
In July, Voyager submitted a bankruptcy protection application, attributing its decision to the instability in cryptocurrency markets and an unpaid substantial loan granted to the crypto hedge fund, Three Arrows Capital (3AC).
Voyager experienced two unsuccessful attempts to sell its assets during its bankruptcy period.
It initially tried to offload its assets for $1.42 billion to FTX, but this transaction fell through when FTX collapsed in November.
Binance.US then came forward with an offer of $1.3 billion but withdrew the proposal on April 25, pointing to an "adverse and unpredictable regulatory environment."
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Disclosure: Benzinga CEO Jason Raznick is a member of the unsecured creditor committee in the Voyager Digital bankruptcy case.