• Bankruptcy Judge John Dorsey approved a $450 million settlement agreement between FTX and Voyager Digital
• FTX will relinquish any and all rights to $450 million that Voyager Digital has claimed from the crypto exchange
• The settlement with FTX is one of many Voyager has been pursuing since filing for bankruptcy in July 2022
Judge Dorsey’s approval of the FTX-Voyager settlement agreement is an important step for Voyager Digital customers hoping to recover some of their lost funds. The settlement releases $450 million in claims between the two crypto firms.
Terms of the Settlement Agreement
According to the settlement terms, FTX will relinquish rights to the $450 million Voyager claimed against them. This includes:
- $5 million held in escrow by Voyager
- $445 million involved in a loan repayment lawsuit from Alameda Research
With the claims settled, the funds can now potentially be used to reimburse Voyager creditors.
Voyager’s Ongoing Bankruptcy Case
The FTX settlement is just one of many Voyager has pursued since filing for bankruptcy in July 2022. Other efforts include:
- A $20 million claim from Three Arrows Capital
- $14 million from Directors and Officers Insurance
A restructuring plan suggested customers may recover 35.7% of claims in crypto or fiat.
However, Voyager still faces lawsuits from the CFTC and FTC alleging fraud by former CEO Stephen Ehrlich. The cases are ongoing.
Conclusion
While customers await further details on disbursements, Judge Dorsey’s approval brings them one step closer to recovering some of their lost savings. The settlement also moves Voyager forward in resolving its bankruptcy case.
