Bon Voyage, FTX
Market Meditations | October 21, 2022
Voyager customers may have reason to rejoice in the near future. Many lost their money when the crypto lender declared bankruptcy last July, but a deal with crypto exchange FTX could end up providing unexpected relief.
- Thanks to a potential deal reached with FTX US, victims affected by the collapse could stand to see a recovery of up to 72% of their account value.
- The measure is far from guaranteed, however. Bankruptcy judge Michael Wiles was careful to highlight the sale’s tentative nature until Voyager’s creditors’ final approval has been received.
- This proposal would enable all priority claims to be completely honored, with other account holders able to claim a 72% reimbursement based on the value of their frozen accounts.
- As written, a clause is included in the FTX deal that allows Voyager to pull out if a better proposition is presented.
Keep in mind this measure is still not a sure thing, but it does provide hope for those affected to see the majority of their funds returned. In addition, there is still the possibility of recouping more funds connected to money Three Arrows Capital owed to Voyager when it defaulted on loan repayments to the Voyager lender platform.