Bankruptcy Judge Approves FTX-Voyager's $450M Settlement

According to Cointelegraph: FTX and Voyager Digital Reach a $450M Settlement. A bankruptcy judge has green-lighted the settlement agreement of $450 million between the cryptocurrency exchange FTX and the bankrupt entity, Voyager Digital. Source: Kroll According to the approved settlement agreement in an April 29 filing, FTX will "relinquish any rights" to the $450 million claimed by Voyager Digital. Judge John Dorsey of the United States Bankruptcy Court for the District of Delaware authorized the bankrupt firm's debtors to enter into the settlement. As a part of Voyager's repayment plan, this agreement allows Voyager to satisfy all claims with FTX. Subject to final approval, both parties have settled that the $5 million held by Voyager in escrow and the additional $445 million involved in a loan repayment lawsuit from Alameda Research will be disbursed to Voyager's debtors. Representative attorney for Voyager Digital and its debtors, Paul Hage, and FTX restructuring officer and CEO John Ray III, signed off on the settlement as of April 4. The bankruptcy came in the wake of a challenging crypto market when Voyager filed for bankruptcy in July 2022. According to reports, this settlement is one out of many that Voyager has been actively seeking since filing for bankruptcy. In its effort to repay users, Voyager secured a proportional claim of around $20 million from Three Arrows Capital, and about $14 million from Directors and Officers Insurance. A restructuring plan in May 2023 noted Voyager customers could recover 35.7% of their claims either in crypto or fiat. Meanwhile, in October 2023, former Voyager CEO Stephen Ehrlich became the subject of parallel lawsuits filed by the U.S. Commodity Futures Trading Commission and the Federal Trade Commission for alleged fraudulent statements. The cases were ongoing as of the latest update.