Creditors of Defunct Crypto Firm Voyager Face April Deadline to Claim $19M in Uncashed Distribution Checks

News | March 18, 2024 By:

On Monday, March 4, 2024, Paul R. Hage, the wind-down administrator for defunct cryptocurrency brokerage Voyager Digital Holdings Inc., notified the bankruptcy court that $19 million worth of distribution checks sent to Voyager creditors last year remain uncashed. The administrator set an April 20 deadline for creditors to deposit the checks or forfeit their recovery amounts.

Since distributing approximately 627,000 checks totaling $131 million to creditors in October 2023 to complete Voyager’s Chapter 11 bankruptcy plan, only around 353,000 checks worth $112 million have been deposited. Over 273,000 checks valued at $19 million are still outstanding.

According to the notice, Voyager made extensive efforts through emails, texts, and phone calls to reach creditors and encourage them to deposit their checks. Creditors were also able to request reissued checks online. However, Hage reported that thousands of checks remain uncashed, including around 189,000 under $25 and 260 over $5,000.

Voyager Digital filed for Chapter 11 bankruptcy protection in July 2022 after experiencing a liquidity crisis when a loan to failed hedge fund Three Arrows Capital soured. An attempted acquisition by FTX fell through due to FTX’s own bankruptcy, as did a later deal with Binance.US. The total estimated recovery for Voyager’s customers is between 40-65%, depending on an ongoing legal dispute.

The cryptocurrency company has faced multiple legal issues since its collapse, including lawsuits from investors and regulators. Unless creditors cash their distribution checks by the new April 20 deadline, the remaining recovery funds will revert to Voyager rather than be returned to those customers.

Please contact BlockTribune for access to a copy of this filing.