A judge has granted a motion allowing the debtors of defunct cryptocurrency exchange FTX to enter into a $450 million settlement with bankrupt firm Voyager Digital.
In an April 29 filing in the U.S. 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 cryptocurrency exchange as part of a plan to compensate creditors. Both parties, subject to approval, could agree that the $5 million held in Voyager's escrow account and the additional $445 million involved in the Alameda Research loan claim would be released to the firm's debtors. FTX will also “waive all rights” to the funds.
Source: Kroll.
Paul Hage , the attorney representing Voyager Digital and its debtors, signed off on the deal, as did restructuring officer and FTX CEO John Ray III as of April 4. The settlement with FTX is one of many that Voyager has been seeking since the firm filed for bankruptcy in July 2022 amid a downturn in the cryptocurrency market.
In April, it was reported that Voyager received a prorated claim of approximately $20 million from Three Arrows Capital and approximately $14 million from directors and officers insurance as part of its efforts to reimburse users. The May 2023 restructuring plan assumed that Voyager customers would be able to recover 35.7% of their claims in cryptocurrency or fiat.
In October 2023, the US Commodity Futures Trading Commission and the Federal Trade Commission filed parallel lawsuits against former Voyager CEO Stephen Ehrlich for fraudulent statements. At the time of publication, the cases were ongoing.