Voyager Digital successfully acquires $484 million from FTX, 3AC, and D&O for repaying creditors, marking a significant step towards financial recovery and operational improvements.

Voyager Digital has made substantial progress in its efforts to repay creditors after its bankruptcy declaration. The company has accessed $484.35 million through settlements with FTX, Three Arrows Capital (3AC), and Directors and Officers (D&O) insurance claims, signifying a major milestone in its financial recovery plan and creditor repayment.

Voyager's recovery strategy involves a multi-faceted approach, leveraging various sources and legal actions to strengthen its financial position. The main portion of the recovered funds, approximately $450 million, is a result of the agreement with FTX. This settlement, which includes interest, accounts for around 25% of the total claims from Voyager's creditors and will be distributed promptly.

Additional contributions to the recovery fund stem from ongoing litigation against Three Arrows Capital (3AC), amounting to approximately $675 million. Voyager has already received an initial sum of $20.43 million from liquidating assets, with expectations of further payments as assets are gradually sold off and through litigation recoveries in the future. Furthermore, an agreement with the D&O insurance will allocate a minimum of $14.35 million to benefit the creditors, bolstering the recovery funds.

Facing operational hurdles, Voyager must address challenges such as a significant number of outstanding uncashed checks totaling $17 million. To manage this issue, Voyager has set a deadline of April 20, 2024, after which any unclaimed checks will be considered void, demonstrating a proactive approach to resolving logistical obstacles.

Furthermore, the company is grappling with the aftermath of a data breach that compromised creditor information. Ongoing investigations involving external cybersecurity experts aim to identify the breach's origin, assess its full extent, and promptly rectify any vulnerabilities in the system.