Crypto Lender Voyager's Customers Vote To File For Bankruptcy: Here's Why

Voyager is expected to appear for the bankruptcy hearing soon. Attorneys will also seek permission from the court to initiate the restructuring plan.

Over 97 percent of crypto lender Voyager's customers voted to file for bankruptcy under Chapter 11 on Wednesday. Earlier last year, Voyager Digital Holdings filed for bankruptcy protection. The vote was in favour of the restructuring plan which will ensure some of its assets' acquisition by Binance US, reported CoinDesk. The customers who voted for the bankruptcy filing of the company represent over 98 percent of the entire claims. The report noted that they hold and represent more than $500 million worth.

The official handle of the company tweeted, "Voyager customer voting on the company’s chapter 11 plan has concluded and finalized: of those who participated, 97 percent of customers, representing 98 percent of the total claims, voted in favour."

According to the report citing filing records, there were about $3 million in unsecured claims. It further added that about $2.95 million of the unsecured claims were against the TopCo along with about $40,000 in claims that were against the holding company.

The platform is expected to appear for the bankruptcy hearing today. Attorneys will also seek permission from the court to initiate the restructuring plan.

Most of the creditors in the company also cast supported the idea of choosing their claims into a wind-down entity. This is according to the declaration of votes breakdown by Stretto Director Leticia Sanchez.

Thie development comes on the heels of the FTX meltdown in early November last year, in which Indian-origin Engineer Nishad Singh pleaded guilty to criminal charges of FTX fraud.

Nishad Singh, the former director of engineering at the now-bankrupt cryptocurrency exchange FTX, pleaded guilty to US criminal charges on Tuesday and extended cooperation with the investigation into FTX founder and former CEO Sam Bankman-Fried. "I am unbelievably sorry for my role in all of this," Singh said, according to the news agency Reuters report. The 27-year-old engineer said he was aware by mid-2022 that Bankman-Fried's hedge fund, Alameda Research, was borrowing FTX customer funds, and customers were not aware. Singh, who was part of the inner circle that ran the hedge fund, said he would forfeit proceeds from the scheme.

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