In short: Voyager Digital is to liquidate its assets and shut down after failing to secure purchase agreements with Binance and FTX.US. The deals' collapse is a significant blow to the US digital asset industry's efforts to establish itself amid a crackdown by regulators. The initial recovery estimate for Voyager's customers is 35.72%, with the plan being to gift the supported assets' allowance percent directly. Customers are allowed to submit objections until May 15th, with an expectation of distributions starting in the next few weeks. The post Voyager Digital to Liquidate its Assets After 2 Failed Purchase Agreements appeared first on CryptoPotato.
Our quick analysis:
The crypto world is no stranger to ups and downs, and the latest casualty in this volatile industry is Voyager Digital. The company has announced plans to self-liquidate its assets and shut down its operations after a series of failed purchase attempts.
One of these attempts was the FTX-Voyager acquisition, which fell through after FTX went bankrupt and its chief, Sam Bankman-Fried, was arrested. However, the collapse of negotiations with Binance.US, the American arm of the crypto giant, was a significant blow to efforts to establish the digital asset industry in the US amid regulatory crackdowns.
In a court filing on May 4th, it was revealed that Voyager's customers could expect an initial recovery of 35.72%. However, 38 tokens, including TRON, Solana, and Algorand, cannot be withdrawn and will be liquidated and returned to customers. Meanwhile, those with supported assets such as Bitcoin and Ether will be able to withdraw a percentage of their holdings directly.
It's important to note that the deadline for any objection to the liquidation process is May 15th at 4 PM EST, and responses should be submitted to the US Bankruptcy Court of the Southern District of New York.
It's unfortunate that Voyager had to suffer this fate after filing for bankruptcy protection in July 2022 following Three Arrows Capital's default on a significant loan position. FTX was able to buy its assets in October 2022 before eventually collapsing, and Voyager then received an offer from Binance.US, which was opposed by the SEC and the Committee on Foreign Investment in the country. The $1 billion deal came to an end last month.
In conclusion, the news of Voyager's liquidation will undoubtedly affect those who used the platform's services. Still, it's a stark reminder of the volatility of the crypto industry and the importance of regulatory compliance. Will other exchange platforms suffer the same fate as Voyager? Only time will tell.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Our quick analysis:
The crypto world is no stranger to ups and downs, and the latest casualty in this volatile industry is Voyager Digital. The company has announced plans to self-liquidate its assets and shut down its operations after a series of failed purchase attempts.
One of these attempts was the FTX-Voyager acquisition, which fell through after FTX went bankrupt and its chief, Sam Bankman-Fried, was arrested. However, the collapse of negotiations with Binance.US, the American arm of the crypto giant, was a significant blow to efforts to establish the digital asset industry in the US amid regulatory crackdowns.
In a court filing on May 4th, it was revealed that Voyager's customers could expect an initial recovery of 35.72%. However, 38 tokens, including TRON, Solana, and Algorand, cannot be withdrawn and will be liquidated and returned to customers. Meanwhile, those with supported assets such as Bitcoin and Ether will be able to withdraw a percentage of their holdings directly.
It's important to note that the deadline for any objection to the liquidation process is May 15th at 4 PM EST, and responses should be submitted to the US Bankruptcy Court of the Southern District of New York.
It's unfortunate that Voyager had to suffer this fate after filing for bankruptcy protection in July 2022 following Three Arrows Capital's default on a significant loan position. FTX was able to buy its assets in October 2022 before eventually collapsing, and Voyager then received an offer from Binance.US, which was opposed by the SEC and the Committee on Foreign Investment in the country. The $1 billion deal came to an end last month.
In conclusion, the news of Voyager's liquidation will undoubtedly affect those who used the platform's services. Still, it's a stark reminder of the volatility of the crypto industry and the importance of regulatory compliance. Will other exchange platforms suffer the same fate as Voyager? Only time will tell.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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