Voyager to end restructuring process, Celsius asset auction underway - OhNo WTF Crypto

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Voyager to end restructuring process, Celsius asset auction underway


Voyager Digital goes into liquidation

Bankruptcy-filed cryptocurrency companies Voyager Digital and Celsius Network are in the process of restructuring themselves. However, the development is the opposite.

Voyager Digital’s liquidation plan has been complicated and plagued with multiple hurdles, including regulatory challenges and legal disputes, likely causing creditor collections to remain at around 36% of expectations. . In contrast, Celsius Network’s bankruptcy proceedings appear to be proceeding relatively smoothly, with a competitive asset auction proceeding as planned.

According to a Reuters report, Voyager Digital is planning to shrink its earnings after a planned acquisition by cryptocurrency exchange Binance.US fell through. In the process, the dividend rate to customers is expected to be 35.72%. U.S. Bankruptcy Judge Michael Wiles approved a liquidation plan to return Voyager’s approximately ¥180 billion ($1.33 billion) in virtual currency to its customers at a hearing on Wednesday. This decision marks the end of Voyager’s Chapter 11 rehabilitation efforts.

Voyager Digital expects to begin liquidation proceedings in the near future and return cash and cryptocurrencies to customers by June 1. Voyager announced via Twitter that it will strive to make the first distribution by June 1st.

Voyager Digital filed for bankruptcy protection in the United States Bankruptcy Court for the Southern District of New York in July 2022. Binance.US was planning to buy Voyager’s assets, but pulled out due to regulatory concerns.

Voyager customers are expected to recover approximately 36% of their invoices in the initial distribution, a recovery rate that would require repayment of ¥61 billion ($445.8 million) from FTX as part of bankruptcy proceedings. up to 63.74% due to the outcome of the lawsuit with Alameda Research (a sister company of FTX).

connection:Binance US Cancels Acquisition of Voyager

Celsius asset auction in progress

Meanwhile, cryptocurrency lending firm Celsius Network is expected to finalize an auction for its assets in the near future. Fahrenheit LLC, a conglomerate that includes Arrington Capital, a blockchain-based venture capital firm, submitted the highest bid for the auction.

The announcement was made by Ross Kwasteniet, an attorney representing Celsius, during a federal bankruptcy court hearing in Manhattan yesterday.

“The auction is taking longer than expected, but the competition is heating up as we have seen some significantly higher bids from the first bidder, digital asset investment firm NovaWulf LLC,” said Kwaste. Mr Nyet said.

Celsius, which filed for Chapter 11 bankruptcy protection in July 2022, launched an auction on April 22, seeking a buyer to take over its cryptocurrency lending and bitcoin mining businesses. The company initially planned to accept NovaWulf’s bid, but has since accepted additional bids from Fahrenheit and the Blockchain Recovery Investment Committee (BRIC), an affiliate of the Gemini Trust owned by the Winklevoss brothers.

Fahrenheit and NovaWulf’s bids indicate that Celsius may continue its lending business as well as its bitcoin mining business. BRIC’s bid, on the other hand, is focused solely on the continuation of its mining operations and will serve as a preliminary bid in case the primary bidder fails to obtain regulatory approval.

Voyager Digital has been forced into liquidation after regulatory issues surfaced and an acquisition by Binance.US fell through. In contrast, Kwasteniet is confident that Fahrenheit or NovaWulf’s willingness to address regulatory challenges could lead to a deal.

Chapter 11 of the U.S. Bankruptcy Code (Chapter 11)

A reconstruction-type bankruptcy legal system similar to the Civil Rehabilitation Law of Japan. The company will be restructured by reducing debts while continuing to operate. Debt collection will be suspended after the application, and the debtor will work on debt consolidation and formulate a reconstruction plan within 120 days in principle.

▶Cryptocurrency Glossary

connection:Celsius resumes withdrawals for some users

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OhNoCryptocurrency via @Kurt Ebenzer, @Khareem Sudlow