Voyager Digital collapse — what creditors were owed and recovered (2022)

Voyager Digital operated a crypto brokerage and interest-bearing account service, listed in Canada but with its operating business and bankruptcy in the United States. It had lent roughly $650 million to hedge fund Three Arrows Capital, which defaulted in June 2022. Voyager froze all withdrawals and trading on its platform on 1 July 2022 and filed for Chapter 11 in the Southern District of New York on 5 July 2022, case 22-10943, before Judge Michael Wiles.

The disclosure statement projected Class 3 Account Holder Claims — the customer class — at about $1.764 billion, against more than 100,000 creditors. Two sale processes failed: a purchase by FTX US collapsed when FTX itself failed, and a Binance.US deal was abandoned. The estate converted to a self-liquidation.

The plan was confirmed on 8 March 2023 and became effective on 19 May 2023. Of roughly $627 million of digital assets made available in the initial distribution, more than $490 million — about 79% — was withdrawn in kind by creditors before the withdrawal window closed in July 2023. The estate then liquidated substantially all remaining digital assets, and every later distribution is paid in US dollars by cheque.

A second distribution began on 31 July 2024. The wind-down continues, with plan administrator status reports and post-confirmation reports filed into 2026.