Voyager Digital, a collapsed crypto trading and lending platform, recently announced the liquidation of assets, with a recovery rate of only 36%. This is an appallingly low rate compared to both estimates of their recovery rate of 72-73% if either of the acquisition plans with crypto exchange Binance or FTX had been successful, as well as recovery estimates for creditors of other bankrupt crypto platforms, like Celsius’s whose creditors are expected to collect around 70% of their shares. If a lawsuit brought by Alameda Research to recoup $446 million from Voyager’s estate fails, the recovery rate might grow.

The digital assets of 67 supported tokens, such as Bitcoin and Ethereum, will be returned to the users in full, however, those who held 38 unsupported coins, such as SOL and ALGO, will receive payments in USDC, a stablecoin. This is due to the fact that Voyager had made agreements with both, Binance.US and FTX. However, as the US government intervened in the Binance.US deal and FTX went bankrupt in November, both of these plans were voided, leaving the company with no other option but to liquidate assets in an orderly fashion.

Knowing the financial difficulties caused by a sudden bankruptcy and lack of options for customers to recover their funds, Voyager decided to retain up to 314.6 million in casings for litigation fees, administrative claims, and various other holdbacks, but also, reserving $446 million of the estate’s assets for the Alameda action, in the hope the creditors will be able to have the anticipated 70-73% payout.

Although this liquidation plan might come as a shock to many of its contributors, it is the only way for Voyager to pay its debts and return the digital assets to their rightful owners, with the highest possible profit. However, it is always important to remember that no investment is completely secure and all information provided by an exchange should be vetted before any deals are made. Additionally, it is important to know the regulatory environment to protect yourself from any surprise intervention.



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