Following Voyager Digital submitting for chapter on Tuesday, the crypto lending agency mentioned its restoration plan was geared toward preserving buyer property however didn’t explicitly state it will have the ability to return all equal funds to affected customers.

In a Monday weblog, Voyager said it had roughly $1.3 billion in affected customers’ funds along with $650 million of “claims towards Three Arrows Capital” — referring to the 15,250 Bitcoin (BTC) and 350 million USD Coin (USDC) mortgage the agency didn’t repay. In response to Voyager’s proposed restoration plan — topic to approval from the courts — customers could obtain a mixture of Voyager tokens, cryptocurrencies, “widespread shares within the newly reorganized firm,” and funds from any proceedings with Three Arrows Capital, or 3AC.

“The precise numbers will rely upon what occurs within the restructuring course of and the restoration of 3AC property,” mentioned the lending agency. “The plan is topic to vary, negotiation with clients, and in the end a vote […] We put collectively a restructuring plan that might protect buyer property and supply one of the best alternative to maximise worth.”

Voyagers,

We perceive how essential it’s to get entry to the worth in your account and we’re working by means of this course of as rapidly as potential to just do that. Right this moment’s publish supplies an replace on buyer money and crypto, and subsequent steps: https://t.co/yBlVB0qgVp (1/6)

— Voyager (@investvoyager) July 11, 2022

Along with crypto property, Voyager mentioned it was holding funds “equal to the quantity of USD in buyer accounts” in a particular FDIC-insured account on the Metropolitan Industrial Financial institution of New York. FDIC safety ensures as much as $250,000 per buyer ought to the financial institution fail — not the lending agency. Voyager added it was “working to revive entry to USD deposits,” topic to a reconciliation and fraud prevention course of.

Voyager issued a discover of default to 3AC on June 27, later citing the agency’s failure to pay as one of many causes behind suspending buying and selling, deposits, withdrawalsand loyalty rewards. The lending agency additionally introduced it had borrowed 15,000 BTC — roughly $500 million on the time — from Alameda Analysis, claiming the funds have been geared toward protecting losses resulting from 3AC.

Traders lament doubtlessly misplaced ‘tens of millions’ on Voyager chapter

Along with the authorized options Voyager is exploring with 3AC’s compensation, the corporate mentioned it was “pursuing varied strategic options to judge the worth of the standalone firm in contrast with a third-party funding or sale.” Information from TradingView shows the corporate’s share worth has fallen greater than 98% since its yearly excessive of $20.35 in November 2021, reaching roughly $0.27 on the time of publication.