FTX and Voyager Digital have secured a $450 million settlement. The agreement, sanctioned by Judge John Dorsey of the United States Bankruptcy Court for the District of Delaware, aims to settle all claims between the two firms. This settlement is part of Voyager’s ongoing efforts to repay creditors following its bankruptcy filing in July 2022.

The terms of the deal were detailed in a court filing on April 29. They include the release of $5 million currently held in escrow by Voyager and an additional $445 million tied to a loan repayment lawsuit from Alameda Research. With this settlement, FTX will relinquish all rights to the funds, facilitating a clearer path for Voyager’s debt repayment strategy.

Both Voyager’s attorney, Paul Hage, and FTX restructuring officer, CEO John Ray III, have formally approved the settlement terms as of April 4. This marks a critical step forward in addressing the claims and financial obligations arising from Voyager’s bankruptcy proceedings.

Voyager Customers to Recover 35.7% of Claims

Voyager Digital’s path to compensating its creditors has included multiple significant settlements and claims. In April, the company secured approximately $20 million from Three Arrows Capital and about $14 million from Directors and Officers Insurance. These funds are part of a broader strategy to manage and distribute assets to affected parties.

A restructuring plan proposed in May 2023 suggested that Voyager customers might recover 35.7% of their claims, whether in crypto or fiat currency. This plan is part of a series of measures designed to stabilize the firm’s financial standing and provide restitution to its users and investors.

Genesis, Gemini Settle with SEC for $21M

The settlement comes amid ongoing legal challenges for entities within the cryptocurrency market. Notably, in October 2023, the U.S. Commodity Futures Trading Commission and the Federal Trade Commission filed lawsuits against Voyager’s former CEO, Stephen Ehrlich. These lawsuits address allegations of fraudulent statements made by Ehrlich, and the cases were still pending at the time of this report.

Additionally, a related lawsuit involving Genesis and Gemini culminated in a $21 million settlement with the SEC. This settlement, approved by a New York federal judge, pertains to charges that Genesis Global Capital sold unregistered securities through the Gemini Earn program. The SEC will receive the penalty upon the bankruptcy court’s confirmation of all claim payments, including those to retail investors involved in the program.

Read Also: US SEC Slammed By Lawmaker Over Misleading Ethereum Security Tag

The post Just In: FTX, Voyager Secure $450M Settlement in Bankruptcy appeared first on CoinGape.

---

Filed under: News - @ January 1, 1970 12:00 am