Voyager Digital has made significant strides in its efforts to repay creditors following bankruptcy, securing $484.35 million from settlements with FTX, Three Arrows Capital (3AC), and Directors and Officers (D&O) insurance claims. This achievement marks a significant milestone in Voyager's financial recovery and creditor compensation efforts.

Voyager's Multi-Faceted Recovery Strategy

Voyager Digital's recovery strategy has been multi-faceted, involving various sources and legal actions. The largest portion of the recovery, approximately $450 million, comes from an agreement with cryptocurrency exchange FTX, representing about 25% of the total creditors' claims. This amount, including interest, is expected to be distributed soon.

Additional recoveries to the recovery fund include a substantial part of the ongoing proceedings against 3AC, totaling roughly $675 million. Voyager has already received $20.43 million from the liquidation of assets associated with 3AC, with further payments expected as assets are sold and litigation recoveries are made. Additionally, a mediation settlement with D&O insurance has committed a minimum of $14.35 million to the benefit of creditors, strengthening the creditor funds.

Operational Challenges

While Voyager Digital navigates its financial recovery, the firm faces operational challenges. For instance, the company has identified approximately 270,000 uncashed checks, totaling $17 million, with most checks being under $25. Voyager has set a deadline of April 20, 2024, for these checks to be cashed, after which they will be considered void, demonstrating a proactive approach to solving this logistical problem.

Furthermore, Voyager Digital is dealing with the aftermath of a data breach that compromised creditor information. The company is working with external cybersecurity experts to identify the source and scope of the breach and to address any vulnerabilities promptly, ensuring the security and protection of its creditors' information.