Voyager Digital customers will receive 35% of their deposits in cryptocurrency by next month.
The Official Creditors Committee of Voyager Digital, the cryptocurrency lending company that filed for bankruptcy in July last year, reported that around $1.330 billion in cryptocurrencies will be returned to its customers by June 1.
The news comes after the US Bankruptcy Court approved the company's liquidation plan at a hearing in Manhattan, New York, yesterday.
Voyager Digital will close its operations and refund its clients' cryptocurrency funds as soon as possible. According to the Committee, it is currently working with the company to implement the liquidation plan approved by the Court, so that the platform's clients can access and withdraw their crypto funds no later than June 1.
Voyager Digital customers have the option to withdraw their funds in the same type of cryptocurrencies they held in their accounts on the platform. However, those who held VGX tokens and unsupported cryptocurrencies will receive the funds in the USDC stablecoin.
On the other hand, the distribution of the remaining client funds, beyond the 35% approved in the liquidation plan, will depend on future litigation, the Committee said. According to court documents, Voyager Digital has an outstanding dispute with failed cryptocurrency exchange FTX.
Voyager Digital filed for Chapter 11 bankruptcy protection last year. However, the company is now ending its efforts to reorganize after failed takeover attempts by FTX and Binance. The former, FTX, had announced it would buy the company for $1.420 billion before its collapse in November. On the other hand, Binance agreed to buy Voyager Digital for $1.300 billion in December, but the company pulled out of the deal due to regulatory uncertainty surrounding the crypto industry in the United States.
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