To travel, a bankrupt cryptocurrency lender, is set to initiate a substantial repayment process to its customers, a deal backed by a $1.3 billion estate. This massive effort comes following the approval of the judge Michael Wileswhich saw fit to endorse the liquidation strategy proposed by Voyager on May 5.
Voyager customers could benefit from an initial recovery of 35%
Despite the significant value of the heritage, which represents approximately 75.68% of total claims value of customers against Voyager, initial recovery forecasts estimate that only approximately 35% will be refunded at the beginning. However, with several proceedings underway that could provide additional funds, there is hope for higher refunds in the future.
The company’s ability to increase its reimbursement amount largely depends on two outstanding issues. First of all, FTX owes the lender around $445 million crypto for loan repayments made before the company collapsed. Second, Voyager is a creditor in the process of liquidation from Three Arrows Capital, which, depending on the results, could contribute to a higher reimbursement rate for Voyager customers.
Customer compensation choices: crypto or fiat?
According to the website of To travelcustomers have the possibility to choose their initial collection by cryptocurrencyvia the Voyager platform, or by USD. The latter, however, can only be received once the withdrawal period crypto currencies elapsed.
Voyager, which filed for bankruptcy in July last year following the collapse of stablecoin UST (TerraUSD) and Three Arrows Capital, suffered a major blow in May when Binance.US pulled out of a deal of a billion dollars aimed at acquiring the assets travel. This turnaround led Voyager to reevaluate its bankruptcy plan and opt for a Chapter 11 plan, allowing the direct distribution of cash and crypto to customers through its platform.
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