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FTX Trading gets approval of global settlement with Voyager Digital
By Sarah Lizee
Olympia, Wash., April 30 – FTX Trading Ltd. secured approval of a global settlement with Voyager Digital, Ltd., according to an order filed Monday with the U.S. Bankruptcy Court for the District of Delaware.
As previously reported, FTX said the settlement is an important step in its Chapter 11 cases because it provides a resolution of the complex disputes between the parties without the cost and delay of litigation, including Voyager’s claims arising from its loans to FTX and from the asset purchase agreement between FTX’s West Realm Shires Inc. unit and Voyager, which was terminated following FTX’s collapse.
The settlement also resolves FTX’s claims for avoidance of transfers made to Voyager as preferences.
The parties will grant mutual releases fully resolving all claims and disputes between and among them.
FTX said that Voyager’s purported claims, asserted for at least $130 million, carry some degree of risk and would be time-consuming and expensive to litigate, and would need to be addressed in connection with the debtors’ plan confirmation process, through litigation and, if unresolved, by maintaining a claims reserve.
Through the settlement, the $5 million deposit provided by West Realm Shires to Voyager in connection with the asset purchase agreement and held in escrow by Voyager will be released to Voyager. The $445 million reserved and held by Voyager in connection with the debtors’ asserted preference claims in the Voyager adversary proceeding will be fully and finally released to Voyager as well.
FTX said the official committee of unsecured creditors supports the settlement.
FTX has headquarters in the Bahamas and filed Chapter 11 bankruptcy on Nov. 11, 2022 under case number 22-11068.
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