FTX and Voyager Digital Reach $450 Million Settlement

An important step forward has been made when a judge approved a request allowing debtors representing the now-defunct cryptocurrency exchange FTX to complete a $450 million deal with the insolvent company Voyager Digital. Previously in 2022, FTX US won the bidding war for Voyager Digital Assets.

In a petition made on April 29 in the United States Bankruptcy Court for the District of Delaware, Judge John Dorsey approved the terms of the Voyager and FTX deal. As part of its plan to pay creditors, Voyager will now be able to settle all outstanding claims with FTX thanks to this milestone.

Agreement Details and Escrow Release

Under the approved terms, both parties are set to agree on the release of funds held in escrow by Voyager, totaling $5 million, along with an additional $445 million entangled in a loan repayment dispute with Alameda Research. FTX, in turn, will forfeit all claims to these funds, signaling a significant step towards resolution.

Paul Hage, who is representing Voyager Digital and its debtors, and John Ray III, CEO of FTX and restructuring officer, have signed the settlement agreement, which is dated April 4. This arrangement is a critical step in Voyager’s efforts to manage the fallout from its July 2022 bankruptcy filing in the context of the unstable cryptocurrency market.

With the announcement of this historic settlement, FTX and Voyager Digital are highlighting the complicated world of cryptocurrency exchanges and the legal nuances of settling disputes in the face of volatile markets.