FTX and Voyager Digital have successfully reached a $450 million settlement to address bankruptcy issues and simplify the process of repaying creditors. The agreement, approved by Judge John Dorsey of the United States Bankruptcy Court for the District of Delaware, aims to resolve all disputes between the two companies. This settlement is a significant step in Voyager's ongoing efforts to settle debts following its bankruptcy filing in July 2022.

The details of the agreement were disclosed in a court filing on April 29. The terms include the release of $5 million currently held in escrow by Voyager and an additional $445 million related to a loan repayment lawsuit from Alameda Research. By agreeing to this settlement, FTX will waive any claims to these funds, which will help pave the way for Voyager's debt repayment plan.

Both Voyager's legal representative, Paul Hage, and FTX's restructuring officer and CEO, John Ray III, have formally endorsed the settlement terms as of April 4. This development signifies a crucial advancement in addressing the claims and financial responsibilities stemming from Voyager's bankruptcy proceedings.

Voyager Customers to Receive 35.7% of Claims

Voyager Digital has been actively working towards compensating its creditors through various settlements and agreements. In April, the company secured around $20 million from Three Arrows Capital and approximately $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 proposal put forth in May 2023 suggested that Voyager customers could potentially recover 35.7% of their claims, whether in cryptocurrency or traditional currency. This initiative forms part of a series of actions aimed at stabilizing the company's financial position and providing restitution to its clients and investors.

Genesis and Gemini Resolve Legal Disputes with SEC for $21 Million

This settlement occurs amidst ongoing legal battles within the cryptocurrency industry. 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, over alleged misleading statements. These cases were still pending at the time of this update.

Furthermore, a separate lawsuit involving Genesis and Gemini concluded with a $21 million settlement with the SEC. This agreement, approved by a federal judge in New York, pertains to accusations that Genesis Global Capital sold unregistered securities through the Gemini Earn program. The SEC will receive the penalty once the bankruptcy court confirms all claim payments, including those to retail investors involved in the program.