Troubled trading platform Voyager says the amount of crypto users can expect to get back depends largely on how much it manages to recover from collapsed hedge fund Three Arrows Capital (3AC).
Voyager previously lent 3AC $650 million in bitcoin and USDC but the Toronto-based company was left holding the bag when the Singapore-based fund declared bankruptcy in June and refused to play ball with liquidators.
As a result, despite pushing 3AC for the funds, Voyager has itself been forced to file for chapter 11 bankruptcy and is undergoing “a voluntary restructuring process.” This, it says will restore access to USD deposits following a fraud prevention process.
However, things aren’t looking so straightforward for customers with crypto deposits still on-platform.
According to a statement released on Monday, in addition to its outstanding claim against 3AC, Voyager holds around $1.3 billion in crypto assets on its platform.
The plan is to redistribute these funds with customers receiving a combination of:
- Pro-rata share of crypto
- Pro-rata share of proceeds from the 3AC recovery
- Pro-rata share of common shares in the newly reorganized Company
- Pro-rata share of existing Voyager tokens
Voyager adds that customers will be able to tailor the proportion of crypto and equity they receive, depending on certain maximum thresholds.
But even with this plan in place customers still have no idea exactly how much they’ll be able to claim back.
“At this stage, we are proposing that customers will receive their crypto as described above,” reads Voyager’s statement.
“However,” it adds, “the exact numbers will depend on what happens in the restructuring process and the recovery of 3AC assets,” (our emphasis).
If Voyager wants its money it has to find 3AC founders first
Voyager has been chasing 3AC for the outstanding millions for some time. According to Forbes, the firm wanted $25 million in USDC by June 24 with the rest of the outstanding debt to follow by June 27. However, this hasn’t happened yet.
And the prospects of getting back the funds don’t look great so far. Three Arrows’ issue with Voyager is just one of a raft of liquidations and unpaid debts that have dogged the company since it went under.
To make things worse, according to recent reports, founders Su Zhu and Kyle Davies are nowhere to be found and when officials tried to track them down at the firm’s Singapore office, all they found were locked doors and piles of unopened mail.