Voyager’s Creditors Raise Objections Against Granting Legal Immunity To Executives

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Stephen Ehrlich; Photo Source: The Market Herald Canada

Voyager Digital’s Unsecured Creditors' Committee (UCC) objected to providing security to its directors and officers from future action.

Last month, FTX won the auction to buy Voyager Digital’s assets for $1.4B. The UCC agreed to accept this deal but raised concerns about the recently filed plan.

According to the UCC’s filings, the committee recently carried out a probe that revealed the sale agreement includes legal immunity for Voyager’s executives. The rest of the information uncovered by the investigation had to be redacted due to a protective order.

The UCC has now suggested adding a third option during the voting process. The option will allow creditors to object to the provision for legal immunity while accepting the terms of FTX’s deal.



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The committee’s lawyers claim that UCC has two options. 

The first one is to reject the proceedings. This will embroil the creditors into more litigation and risk freezing their assets for a longer period. 

The second option is to comply with the sale agreement and stand a chance at recovering their funds.

The UCC also requested the Court to allow it to reveal the results of its probe ahead of the hearing scheduled for October 19. The committee claimed it is free to disclose this information as it is not protected by the bankruptcy code.

Written by
Ayush Pande

Voyager Digital’s Unsecured Creditors' Committee (UCC) objected to providing security to its directors and officers from future action.

Last month, FTX won the auction to buy Voyager Digital’s assets for $1.4B. The UCC agreed to accept this deal but raised concerns about the recently filed plan.

According to the UCC’s filings, the committee recently carried out a probe that revealed the sale agreement includes legal immunity for Voyager’s executives. The rest of the information uncovered by the investigation had to be redacted due to a protective order.

The UCC has now suggested adding a third option during the voting process. The option will allow creditors to object to the provision for legal immunity while accepting the terms of FTX’s deal.



Get Our Free Newsletter

Subscribe to our newsletter to get tips, our favorite services, and the best deals on Bitcompare-approved picks sent to your inbox


The committee’s lawyers claim that UCC has two options. 

The first one is to reject the proceedings. This will embroil the creditors into more litigation and risk freezing their assets for a longer period. 

The second option is to comply with the sale agreement and stand a chance at recovering their funds.

The UCC also requested the Court to allow it to reveal the results of its probe ahead of the hearing scheduled for October 19. The committee claimed it is free to disclose this information as it is not protected by the bankruptcy code.

Written by
Ayush Pande