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Bankruptcy judge signs off on $450M FTX-Voyager settlement

News Feed - 2024-04-30 04:04:00

Turner Wright4 hours agoBankruptcy judge signs off on $450M FTX-Voyager settlementAccording to the terms of the deal, FTX will “relinquish any and all rights” to $450 million Voyager Digital has claimed from the crypto exchange.1536 Total viewsListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksA judge has granted a motion authorizing debtors for defunct cryptocurrency exchange FTX to enter a $450-million settlement agreement with bankrupt firm Voyager Digital.


In an April 29 filing in the United States Bankruptcy Court for the District of Delaware, Judge John Dorsey approved the terms of an agreement between FTX and Voyager, allowing the latter to settle all claims with the crypto exchange as part of a plan to compensate creditors. Both parties, subject to approval, will be able to agree that $5 million held in escrow by Voyager and an additional $445 million involved in a loan repayment lawsuit from Alameda Research will be released to the firm’s debtors. FTX will also “relinquish any and all rights” to the funds.Source: Kroll


Paul Hage, the attorney responsible for representing Voyager Digital and its debtors, signed off on the deal, as did FTX restructuring officer and CEO John Ray III as of April 4. The settlement with FTX is one of many Voyager has been pursuing since the firm filed for bankruptcy in July 2022 amid a crypto market downturn.


Related:Judge signs off on $1.65B settlement between Voyager Digital and FTC


Cointelegraph reported in April that Voyager obtained a proportionate claim of roughly $20 million from Three Arrows Capital and roughly $14 million from Directors and Officers Insurance as part of its efforts to reimburse users. A restructuring plan from May 2023 suggested that Voyager customers could recover 35.7% of their claims in crypto or fiat.


In October 2023, the U.S. Commodity Futures Trading Commission and the Federal Trade Commission filed parallel lawsuits against former Voyager CEO Stephen Ehrlich for fraudulent statements. The cases were ongoing at the time of publication.


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