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According to court filings, a plan has been submitted by Voyager Digital, which will require customers of the bankrupt crypto broker to have Binance US accounts for recovering their funds.
The early opt-in period had begun in the previous week, which means the customers can start sharing data for helping Binance US in linking existing accounts or creating new ones before the claims are settled.
Voyager and Binance US
The two companies mentioned in the filing that they were expecting the deal to be finalized in March and payments will begin once that happens.
However, Binance US issued a warning to Voyager customers based in Vermont, Texas, New York, and Hawaii that they would have to wait at least six months longer.
This is due to the fact that the crypto exchange cannot open accounts for customers in states where it does not have the approval to operate.
Joshua Sussberg, a partner at Kirkland & Ellis, said in the court filing that Binance US would attempt to get authorization for operating in the said states in the 6 months, starting from the asset purchase agreement.
In the event the exchange is unable to get the necessary licensing, the distributions that are to be allocated to customers in those state will be converted into cash by Voyager and distributed separately.
The process
As far as other US-based customers of the bankrupt crypto broker are concerned, they would have to share personal details, such as their date of birth, social security number, and email address.
This would be needed for creating a Binance US account on their behalf. Voyager has also set up a claims portal, which shows users the value of the assets they had at the time of the company’s bankruptcy filing on July 5th, 2022.
However, this does not mean that customers are going to receive 100% of their assets. The court filing said that the actual recovery amount will be a percentage of their claim.
It further said that the company’s rebalancing had determined the percentage a user would receive.
Market prices
The Official Committee of Unsecured Creditors of the company said on Twitter last month that market prices will determine the actual recovery of the users.
The creditor committee said that there is a high percentage of altcoins and they have not performed so well, as opposed to stablecoins and leading crypto tokens in the market.
They said that the crypto movements would determine just how much recovery a user can expect to make.
For instance, the committee said that if market prices on December 18th, 2022 were used, then customers would have recovered 51% of their assets.
But, they later said that the percentage had just been used for illustrative purposes and the actual recovery amounts would depend on market prices on the day the deal is finalized.
A couple of months ago, Voyager customers believed that they would have to go through a payout process similar to that of FTX US.
But, the company reopened bidding on its assets after FTX had filed for bankruptcy.
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