Share this article
Customers of Bankrupt Crypto Lender Voyager Could Recover 72% of Their Funds if FTX Sale Is Approved: Report
A judge still needs to approve a bankruptcy payout plan and the company could still scrap the deal in favor of a higher bid.
Updated Oct 20, 2022, 9:06 p.m. Published Oct 20, 2022, 9:22 a.m.
Make us preferred on Google
Court documents show customers of bankrupt crypto lending platform Voyager Digital could recover 72% of their investments if a bid by FTX US to buy the lender goes through. But the sale won't close until a judge approves Voyager's payout plan, Bloomberg reported on Wednesday.
The Toronto-based Voyager filed for Chapter 11 bankruptcy protections in the U.S. Southern District Court of New York back in July. At the time, it had around 100,000 creditors and between $1 billion to $10 billion in assets. The bankruptcy filing was followed by a bidding war to buy the embattled lender, which Sam Bankman-Fried's FTX winning the race in September.
STORY CONTINUES BELOW
In a letter to the court filed on Oct. 18, Voyager debtors said the sale to FTX US would allow customers to recover around 72% of the value of crypto held in their accounts on the platform, "provides stakeholders with the best possible recovery and facilitates the most expedient resolution" to the bankruptcy proceedings.
During a hearing on Wednesday, U.S. Bankruptcy Court Judge Michael E. Wiles approved an arrangement where Voyager can scrap the FTX deal if a better offer materializes that promises customers a chance to recover more of their funds, the report said. Wiles may consider approving Voyager's bankruptcy payout plan in December – a prerequisite for approving the sale.
The firm also requested Wiles' permission to send its payout plan to customers for a vote, Bloomberg reported. Even if creditors vote in favor, Wiles still has the final say on the sale.
Read more: Voyager Digital's Creditors Push Back Against Plans to Provide Execs With Legal Immunity
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
DeFi, ethics disputes remain in Senate crypto bill ahead of Jan. 15 vote
The Senate is approaching a potential markup that may advance crypto legislation to a vote, and industry insiders are amassing for a lobbying push this week.
What to know:
- The U.S. Senate is potentially as close as it's ever been to a crypto market structure law, as the Senate Banking Committee's chairman said the panel will be ready to mark up the latest draft next week.
- It's still unclear how much Democrats might push back against this timeline, considering most of the big-ticket disputes remain to be resolved between the parties.
- A negotiation document that emerged after a meeting among senators on Tuesday demonstrates that many of the Democrats' requests have potentially been satisfied, but key concerns over the ethics of senior government officials, the treatment of DeFi and the question of stablecoins offering yield still await answers.
- Crypto insiders will visit Senate offices this week to cheer on the negotiations.
Top Stories
