Bankrupt crypto firms FTX Trading and Voyager Digital Holdings have reached a settlement agreement in their loan disputes, which will facilitate the reimbursement of creditors. The resolution of these long-standing claims was finalized on Tuesday, resulting in the complete release of $445 million to Voyager, including interest.

Voyager’s financial troubles were further exacerbated by the collapse of crypto hedge fund Three Arrows Capital (3AC), as it had loaned approximately 60% of its holdings to 3AC.

In a motion filed on Tuesday, FTX, facing its own challenges, requested the approval of the deal from a Delaware bankruptcy court. The motion stated that the agreement “provides mutual releases fully resolving all claims and disputes between and among” Voyager and FTX.

Both companies had asserted claims against each other within their respective Chapter 11 bankruptcies. The origin of the dispute dates back to a cryptocurrency loan that Voyager extended to Alameda Research Ltd., a subsidiary of FTX, in October 2021.

In January of the following year, Alameda and FTX initiated legal proceedings against Voyager to recover loan repayments. In response, Voyager filed proofs of claim amounting to $130 million against FTX in June 2023, alleging that Alameda had breached the terms of the October 2021 loan agreement.

Following the settlement, both firms have agreed to refrain from taking any further legal action against each other, subject to certain conditions, as outlined in the court filings.

The resolution of these loan disputes will provide some relief to the creditors involved and represents a step towards resolving the bankruptcy proceedings of FTX Trading and Voyager Digital Holdings.

A Ray of Hope for Voyager Creditors?

The successful settlement agreement with FTX brings hope to investors who have experienced locked-up cryptocurrencies on the platform. The resolution is seen as a favorable outcome for Voyager creditors, considering the potential risks, expenses, delays, and market uncertainties associated with prolonged litigation of the FTX Adversary Proceeding, as noted by Voyager’s legal counsel.

As a result of the settlement, an amount of $450 million, along with interest, will be released in the near future. This sum can be distributed to creditors in a second distribution that is expected to take place in the coming months.

However, it’s important to remain cautious of fraudulent activities. The court filing warns creditors to be vigilant regarding scammers who may impersonate Voyager. The counsel specifically acknowledges that reports of fraudulent activity targeted at Voyager creditors are being received. Steps have been taken to address these cases and prevent them from causing further harm.

The settlement agreement offers a positive outlook for investors affected by the situation, as it provides the possibility of recovering funds in a more timely manner. Creditors should remain attentive to official communications from Voyager and follow the prescribed procedures to ensure their claims are handled properly and securely.

Bankrupt crypto firms FTX Trading and Voyager Digital Holdings have reached a settlement agreement in their loan disputes, which will facilitate the reimbursement of creditors. The resolution of these long-standing claims was finalized on Tuesday, resulting in the complete release of $445 million to Voyager, including interest.

Voyager’s financial troubles were further exacerbated by the collapse of crypto hedge fund Three Arrows Capital (3AC), as it had loaned approximately 60% of its holdings to 3AC.

In a motion filed on Tuesday, FTX, facing its own challenges, requested the approval of the deal from a Delaware bankruptcy court. The motion stated that the agreement “provides mutual releases fully resolving all claims and disputes between and among” Voyager and FTX.

Both companies had asserted claims against each other within their respective Chapter 11 bankruptcies. The origin of the dispute dates back to a cryptocurrency loan that Voyager extended to Alameda Research Ltd., a subsidiary of FTX, in October 2021.

In January of the following year, Alameda and FTX initiated legal proceedings against Voyager to recover loan repayments. In response, Voyager filed proofs of claim amounting to $130 million against FTX in June 2023, alleging that Alameda had breached the terms of the October 2021 loan agreement.

Following the settlement, both firms have agreed to refrain from taking any further legal action against each other, subject to certain conditions, as outlined in the court filings.

The resolution of these loan disputes will provide some relief to the creditors involved and represents a step towards resolving the bankruptcy proceedings of FTX Trading and Voyager Digital Holdings.

A Ray of Hope for Voyager Creditors?

The successful settlement agreement with FTX brings hope to investors who have experienced locked-up cryptocurrencies on the platform. The resolution is seen as a favorable outcome for Voyager creditors, considering the potential risks, expenses, delays, and market uncertainties associated with prolonged litigation of the FTX Adversary Proceeding, as noted by Voyager’s legal counsel.

As a result of the settlement, an amount of $450 million, along with interest, will be released in the near future. This sum can be distributed to creditors in a second distribution that is expected to take place in the coming months.

However, it’s important to remain cautious of fraudulent activities. The court filing warns creditors to be vigilant regarding scammers who may impersonate Voyager. The counsel specifically acknowledges that reports of fraudulent activity targeted at Voyager creditors are being received. Steps have been taken to address these cases and prevent them from causing further harm.

The settlement agreement offers a positive outlook for investors affected by the situation, as it provides the possibility of recovering funds in a more timely manner. Creditors should remain attentive to official communications from Voyager and follow the prescribed procedures to ensure their claims are handled properly and securely.

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *