According to a Friday filing, Voyager will liquidate and restore to consumers a number of digital assets on the platform that cannot be removed. Among them are big cryptocurrencies such as Algorand (ALGO), Celo (CELO), and Avalanche (AVAX).
According to the filing, a number of other major cryptocurrencies on the platform will not be liquidated but will instead be returned to customers in digital form, albeit at a recovery rate of around 36% – an appallingly low recovery rate compared to both estimates of their recovery rate of 72-73% if either of the acquisition plans were successful, as well as recovery estimates for creditors of other bankrupt crypto platforms. Celsius’ creditors, for example, are expected to collect around 70% of their shares.
If collapsed crypto trading company Alameda Research’s quest to recoup $446 million from Voyager’s estate fails, the recovery rate might grow. In addition to reserving $446 million of the estate’s assets for the Alameda action, Voyager’s attorneys are retaining an additional $259.6 million for litigation fees, administrative claims, and various other holdbacks.