As a researcher with a background in financial markets and bankruptcy proceedings, I find the recent settlements between FTX and Voyager Digital, as well as Genesis and Gemini, to be significant developments in the evolving regulatory landscape of the cryptocurrency industry.
Ftex and Voyager Digital have reached a $450 million deal, approved by Judge John Dorsey of the Delaware Bankruptcy Court. This agreement is intended to resolve all disputes between us. In the context of Voyager’s ongoing efforts to repay its creditors after filing for bankruptcy in July 2022, this settlement represents a significant step forward.
In a court document submitted on April 29th, the specifics of the agreement were laid out. This deal involves the transfer of $5 million from FTX, which is currently being held in escrow, and an extra $445 million linked to a lawsuit regarding loan repayment by Alameda Research. With this settlement in place, FTX will forfeit all claims to these funds, thereby smoothing out Voyager’s debt restructuring process.
As a analyst, I can tell you that on April 4, both Voyager’s legal representative, Paul Hage, and FTX’s restructuring chief executive officer, John Ray III, have given their approvals to the settlement terms in writing. This approval signifies a significant milestone in dealing with the claims and financial responsibilities resulting from Voyager’s bankruptcy process.
Voyager Customers to Recover 35.7% of Claims
As a crypto investor following the developments at Voyager Digital closely, I’m excited to share that the company has made considerable progress in its efforts to compensate creditors. In April alone, we secured approximately $20 million from Three Arrows Capital and around $14 million from Directors and Officers Insurance. These funds are part of a larger plan to manage and distribute assets effectively to those who have been affected by the recent challenges.
In May 2023, I proposed a restructuring plan that indicated Voyager customers could potentially recoup 35.7% of their claims, be it in cryptocurrency or fiat currency. This plan was a crucial component of the broader strategy aimed at financially stabilizing the company and offering redress to both users and investors.
Genesis, Gemini Settle with SEC for $21M
Amidst continuous litigation facing various players in the cryptocurrency sector, a resolution has emerged. Notably, in October 2023, the U.S. Commodity Futures Trading Commission (CFTC) and the Federal Trade Commission (FTC) brought charges against Voyager’s ex-CEO, Stephen Ehrlich. The allegations center around false claims made by Ehrlich. These cases were yet to be resolved when this article was published.
An ongoing legal case relating to Genesis and Gemini resulted in a $21 million settlement with the Securities and Exchange Commission (SEC). This resolution, sanctioned by a federal judge in New York, centers around allegations that Genesis Global Capital illegally sold unregistered securities via the Gemini Earn program. Upon approval of all creditor payments in the bankruptcy proceedings, the SEC will receive the penalty payment, including those allocated to retail investors participating in the program.
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2024-04-30 00:57