Account holders at now-bankrupt Voyager Digital Ltd. shouldn’t expect to get all their crypto back as the company reorganizes, Bloomberg News reported. The crypto brokerage and lender filed for chapter 11 bankruptcy late Tuesday, renewing unresolved legal questions about how digital assets will interact with U.S. insolvency law. One thing is certain: Voyager doesn’t intend to simply give users back their Bitcoin, Ether and other assets stored on the platform. The company’s plan to exit bankruptcy plainly says it expects account holders to be “impaired” by the chapter 11 process, meaning they won’t be getting back exactly what they’re owed. Voyager intends to repay users with a mix of the crypto they deposited, stock in the restructured company, Voyager tokens and money recovered from bankrupt hedge fund Three Arrows Capital, court papers show. Three Arrows owes Voyager more than $650 million. Customers with U.S. dollar deposits in their accounts will be able to reclaim that money “after a reconciliation and fraud prevention process” is completed with Metropolitan Commercial Bank, according to a statement from Voyager. Voyager doesn’t keep user assets in designated wallets for each customer. It instead mixes deposited crypto into asset-specific pots, like ones for Bitcoin and Ether, according to court papers. The company has about $1.3 billion of crypto assets on its platform, it said in the statement.
