Former executives of Voyager propose live trading as a restructuring strategy.
The embattled US cryptocurrency lender has received a restructuring proposal from Shingo Lavine and his father, Adam Lavine, both stock owners in Voyager and creators of Ethos, a leading bitcoin technology business.
According to Lavine's restructuring proposal submitted last week, Voyager is supposed to stop all of its loan activities and concentrate on doing live trading.
Voyager paid $4 million three years ago to acquire the assets of the cryptocurrency technology company Ethos. As a result, Shingo Lavine, a director on the Voyager board of directors, was appointed the company’s chief innovator. He soon left Voyager due to certain differences in the firm's direction.
Voyager Digital filed into Chapter 11 bankruptcy with the U.S. Bankruptcy Court of the Southern District of New York during the upheaval of the recent crypto winter. This allowed it to develop a successful restructuring strategy that will pave the way for the company to regain account access and deliver value to customers while compensating them.
Initial Restructuring Plan from Voyager
The original restructuring strategy was to distribute a variety of cryptocurrency assets, including shares in the newly reorganized firm, Voyager tokens, and revenues from the loan Three Arrows Capital (3AC) owed. In addition to the cryptocurrency already in their accounts, this is also.
Currently, 3AC owes the lender of bitcoin assets more than $650 million in cryptocurrency. More detail, the previously unreported loan comprises $350 million USDC and 15,250 Bitcoin (BTC).
Voyager now has approximately $110 million in cash and cryptocurrency assets. It still has $350 million in its Metropolitan Commercial Bank For Benefit of Customers (FBO) account.
Voyager has over $1.3 billion worth of cryptocurrency assets on its platform. However, some of it was intended to be utilized as cash to keep the platform operating normally while reorganizing.
The Lavines’ new 8-step proposal, which has yet to be completed, departs from these original ideas.
The father and son hope that Voyager and their new company Emerald will work together crucially during the restructuring process. The main goal of their strategy is to incorporate live trading and provide users with recovery tokens to keep them on the platform.
A portion of the strategy aimed to “give unsecured creditors with a sizable additional upside and encourage client retention by issuing a “recovery token” in addition to VGX Tokens. At the time of publishing, VGX was trading at $ 0.3665, down 5.5 % from day's high.