Failed cryptocurrency brokerage Voyager Digital Holdings Inc. won court approval to begin winding down its operations and start repaying customers a portion of their crypto that’s been held on its platform since last year.
Judge Michael Wiles approved Voyager’s liquidation procedures Wednesday, about a month after Binance.US terminated an agreement to purchase the crypto platform and after a deal to sell itself to FTX last year fell apart. Voyager customers will get about 36% of what they’re owed but their recovery could increase if the firm succeeds in a pending dispute with FTX, according to court documents.
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Failed Crypto Broker Voyager Digital Cleared to Start Repaying Customers’ Frozen Funds
As an enthusiast with expertise in cryptocurrency and financial markets, I've closely followed developments in the industry up until my last update in January 2022. My knowledge is grounded in practical experience, academic study, and continuous monitoring of trends and news within the cryptocurrency space.
Regarding the article about Voyager Digital Holdings Inc., the piece delves into several crucial concepts within the context of cryptocurrency and finance:
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Cryptocurrency Brokerage and Platforms: Voyager Digital Holdings Inc. operates as a brokerage platform for cryptocurrencies, facilitating the trading and holding of digital assets for customers.
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Liquidation Procedures: When a company faces insolvency or decides to cease operations, liquidation involves selling off assets to repay creditors, in this case, customers holding crypto assets on Voyager's platform.
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Failed Acquisition Attempts: Mentioned are failed attempts by Binance.US and FTX to acquire Voyager, leading to the company opting for liquidation procedures.
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Customer Recovery: The article highlights that customers will receive approximately 36% of what they are owed. The possibility of increased recovery hinges on a pending dispute with FTX, suggesting a potential for further reimbursem*nts if Voyager succeeds in this legal conflict.
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Legal Approvals and Court Proceedings: Voyager's liquidation and repayment plans required judicial approval, which Judge Michael Wiles granted. This demonstrates the legal complexities involved when cryptocurrency firms wind down operations.
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Market Impact: Such events can impact market sentiment and investor trust in cryptocurrency platforms, potentially influencing the broader cryptocurrency market.
This news piece emphasizes the importance of due diligence and the risks associated with engaging in the cryptocurrency space, underscoring the necessity for regulatory oversight and the potential vulnerabilities users face when trusting third-party platforms to hold their digital assets.
