Settlement Reached Between Bankrupt FTX Trading and Voyager Digital Holdings
Bankrupt crypto firms FTX Trading and Voyager Digital Holdings have come to an agreement to settle loan disputes, which will help in reimbursing creditors. The dispute between both parties was finalized on Tuesday, releasing $445 million to Voyager, including interest.
- FTX Trading and Voyager Digital Holdings reached a settlement agreement for loan disputes.
- $445 million, including interest, will be released to Voyager as part of the settlement.
Voyager’s financial downfall was exacerbated by the issues faced by crypto hedge fund Three Arrows Capital (3AC), as it had lent around 60% of its holdings to 3AC.
Details of the Settlement Agreement
The settlement agreement between FTX and Voyager was presented in a motion filed on Tuesday, where FTX requested approval from a Delaware bankruptcy court. The agreement includes mutual releases that resolve all claims and disputes between the two parties.
- A motion was filed by FTX to seek approval from the bankruptcy court for the settlement agreement.
- The agreement entails mutual releases to resolve all claims and disputes between Voyager and FTX.
Both FTX and Voyager had previously filed claims against each other in their respective Chapter 11 bankruptcies. The conflict arose from a cryptocurrency loan made by Voyager to Alameda Research Ltd., a subsidiary of FTX, in October 2021.
Background of the Dispute
In January of the previous year, Alameda Research Ltd. and FTX initiated legal proceedings against Voyager to recover loan repayments. Subsequently, proofs of claim amounting to $130 million were filed against FTX in June 2023, with allegations of breach of terms from Alameda’s end.
- Legal proceedings were initiated by Alameda Research Ltd. and FTX against Voyager for loan repayments.
- FTX filed proofs of claim against Voyager, amounting to $130 million, in June 2023.
With the recent settlement in place, both companies have agreed not to pursue any further legal action against each other, subject to specific conditions outlined in the filings.
Potential Relief for Voyager Creditors
The resolution reached with FTX brings a ray of hope for investors who had their funds tied up on the Voyager platform. The favorable outcome of the settlement is expected to benefit Voyager creditors by facilitating a smoother distribution of funds.
- The settlement with FTX provides a positive outcome for Voyager creditors.
- Voyager creditors may expect a more efficient distribution of funds following the settlement.
According to counsel representing Voyager, the settlement will lead to the release of $450 million, along with accrued interest, in the near future. This amount can then be allocated to creditors in a subsequent distribution within the coming months.
Warning Against Fraudulent Activities
While the settlement brings some relief, creditors are cautioned to remain vigilant against potential scams impersonating Voyager. Reports of fraudulent activities targeting Voyager creditors have been received, prompting the counsel to advise caution.
- Creditors should be cautious of fraudulent activities posing as Voyager.
- Measures have been implemented to address and prevent fraudulent schemes targeting Voyager creditors.
An Update for Voyager Creditors
In conclusion, the settlement between FTX Trading and Voyager Digital Holdings signifies progress in resolving the loan disputes and offers hope to creditors awaiting repayment. The successful agreement aims to expedite the distribution of funds to Voyager creditors and mitigate the uncertainties associated with prolonged litigation.
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