Distressed crypto lending company Voyager Digital Ltd., is asking for creditors’ consent for its $1.42 billion sale to FTX – a major cryptocurrency trading company.
According to a Benzinga report: clients may be able to claw back 72% of their assets from Voyager if the proposal passes.
US bankruptcy Judge Michael Wiles also reiterated that Voyager should remain open to better proposals. This will make sure that creditors get the best outcome possible. The deal will not be official until creditors give approvals.
Binance, the largest crypto exchange platform by volume, also made a bid for Voyager last September.
Voyager, a Toronto-based company, filed for Chapter 11 bankruptcy protections in July 2022. This came after several other crypto-lending companies succumbed to financial troubles.
Nothing is final yet and at the end of the day, clients of Voyager just want their investments back. While the possibility of recovery of only 72% of the original amount is less than ideal, it is still something to look forward to. This is a grim reminder that the crypto industry is still young and stakeholders must always manage their risk. Hopefully, lessons from cases like this will guide all investors and regulators in the future.
