Following FTX’s confirmation as the winner of the auction for the assets of bankrupt crypto brokerage Voyager Digital Ltd, creditors have challenged proposed plans to grant the company’s officers and directors immunity from all lawsuits related to the collapse of the crypto brokerage, court documents filed on October 12.
According to the court files, while the creditors do not oppose the proposed sale to FTX as the same, the creditors are necessary to “maximize recoveries from the debtors’ unsecured creditors in the most timely, efficient and effective manner”, they believe that the sales appear to be conditioned on “broad releases for Voyager’s directors and officers.”
Voyager creditors further claimed that they investigated the circumstances that led to the crypto brokerage’s bankruptcy. Although they did not make their findings public, the creditors claimed that “the findings are sobering”.
According to court records, the state of affairs forced creditors to take a “Hobson’s choice” to “either support the completion of the Sale Transaction and the Second Amended Plan, along with effective full and full releases of the Directors and officers of the Debtors, or risk these Chapter 11 cases escalating into a quagmire of lawsuits solely to the detriment of from unsecured creditors, whose assets will remain frozen for a much longer period.”
Bon trip for everyone who buys
At the time of writing, VGX traded hands at $0.4608. According to data from CoinMarketCap, the asset’s price is up 24% in the past 24 hours.
In addition, VGX’s trading volume was up 121% at the time of going to press. Per data from Holinessat the time of writing, VGX’s trading volume has hovered around $20 million.
Coupled with an unknown future for the crypto brokerage, holders of its VGX token have been plunged into losses since Sept. 21, data from Santiment shows.
A look at the asset’s market value to realized value (MVRV) on a 30-day moving average revealed that the statistic had posted negative values since Sept. 21. At the time of going to press, VGX’s MVRV was -28.83%, indicating a significant number of VGX holders at a loss.
Interestingly, despite the increase in the asset’s price over the past 24 hours, VGX continued to see negative bias from its holders. Weighted sentiment against the token has been negative since mid-August. At the time of going to press, it was -0.449.
This post Voyager [VGX]: Creditors oppose immunity plan, details inside
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