a month ago 1 min read

Voyager's Creditors Finally Strike A Settlement Arrangement With FTX/Alameda


In order to end the conflict between the two parties, the Voyager Unsecured Creditors Committee (UCC) has struck an agreement with Travel and FTX/Alameda.

The latest press release from UCC states that "the agreement not only protects resources but also directly and materially benefits Voyager's debt."

Alameda, which went out of business along with Sam Bankman-empire, Fried's has agreed to withdraw $75 million in damages or transferring it to Voyager OpCo to benefit creditors. In addition, Alameda must "waive any entitlement to a distribution on account of Alameda's equity holdings" in the crypto broker or give it to Voyager OpCo.

Previous failed FTX/Alameda sales will also be preserved. These companies must not oppose Voyager’s chapter 11 plan.

Voyager Digital's creditor has already asked for the appointment of a trustee in the bankruptcy proceedings. The creditor claims to have a $1.7 million claim against the business.

The creditor claims that the cryptocurrency broker participated in unlawful behavior, including withholding assets and diverting payments, and refused to disclose pertinent information. Due to a technical error, the company filed for bankruptcy in Canada in January 2022, costing its clients roughly $87 million.

Also, permission has been given for the unsecured debtor of the cryptocurrency broker to call Sam Bankman-Fried as a witness in a bankruptcy hearing. The debtors want to know how bad the company's financial situation is and whether it deceived investors.

The US Federal Trade Commission (FTC) has objected to Voyager's proposed bankruptcy plan, citing issues with the way the business treats its clients. The FTC claims that the cryptocurrency broker engages in dishonest and unfair business practices, including falsely representing that its assets are insured and deceiving clients about the platform's security.

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