First Voyager Digital Customer Payout Starts June 1 Despite Failed Binance's $1.3B Asset Acquisition Deal

Failed crypto lender Voyager Digital is set to start paying about 35% of its crypto deposits to its creditors on June 1 as it started winding down its operations following the failed $1.3 billion asset acquisition deal with Binance.US.

A pending repayment plan is anticipated to take effect in the next few weeks, but according to Voyager's Official Committee of Unsecured Creditors, it is "working with Voyager to go effective under the plan as soon as possible (as early as this Friday)."

The official Twitter account of the committee also provided an update on its target distribution date after explaining what will happen after the plan becomes effective.

"After the plan becomes effective, the Committee will be dissolved and the Plan Administrator will take control of the Wind Down Debtor," the tweet read.

"We are still working towards making initial distributions available no later than June 1. We will provide additional updates as they are available," a follow-up tweet revealed.

About a month after Binance.US terminated the billion-dollar asset acquisition deal with the bankrupt crypto lender, U.S. Bankruptcy Judge Michael Wiles approved Voyager's liquidation plan at a court hearing in Manhattan on Wednesday.

This ruling enables Voyager Digital to return approximately $1.33 billion in crypto assets to its customers and indicates the end of its efforts to restructure under Chapter 11.

Customers could get as much as 35% of what the bankrupt crypto lender owed them with the amount of recovery anticipated to increase depending on the pending dispute with the controversial bankrupt crypto empire FTX, court documents reveal.

"Hindsight's 20/20," Judge Wiles said, noting that "I'm sure everybody wishes that something better had happened."

"We are where we are, we're trying to do the best with where we are," he added.

Voyager Digital temporarily paused withdrawals on its platform on July 1, 2022, and eventually filed for Chapter 11 bankruptcy protection on July 6 of the same year.

In its efforts to return the funds it owed its customers and creditors, the crypto lender tried to sell its assets to FTX but the transaction failed.

Binance.US showed interest in the following months after the failed deal and despite the challenges the American arm of the major crypto exchange platform experienced in getting the court approval, it later backed out, citing the "hostile and uncertain regulatory climate in the United States."