Voyager Digital, a crypto lending platform that filed for bankruptcy in July 2022, has received court approval to begin repaying its customers’ trapped funds. However, the repayments will only cover 36% of what customers are owed. The liquidation procedures come after over 10 months of freezing customer withdrawals, which was caused by the bankruptcy of Three Arrows Capital (3AC), the company’s hedge fund. Despite the approval, customers remain dissatisfied with the bankruptcy process and the result, citing the high cost of the bankruptcy process, the amount being paid to lawyers, the oversight of the case, and the fractional returns that creditors would receive. However, Judge Michael Wiles, who approved the liquidation procedures, acknowledged that Voyager lacked the funds to repay customers in full. He stated that the bankruptcy process was their only option.

Voyager has faced several misfortunes since filing for bankruptcy. Its initial plan to strike a buyout deal with FTX fell through in November when the crypto exchange imploded. Voyager’s $1 billion buyout deal with Binance US also fell through last month. The lender currently has just $630 million to repay $1.8 billion in customer claims, according to a court filing on May 5. Its holdings may increase if a pending dispute with FTX proves fruitful.

Crypto

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