Where Voyager, Celsius Stand in Bankruptcy Proceedings

Both Celsius and Voyager have announced updates in their bankruptcy processes in the past few days

article-image

mundissima/Shutterstock modified by Blockworks

share

It has been nearly a year since both Celsius and Voyager declared bankruptcy following the collapse of algorithmic stablecoin TerraUSD. 

On July 6, 2022, Voyager filed for bankruptcy. A few days later, on July 13, Celsius followed suit

Both lenders had paused withdrawals, transfers, and swaps in mid-June.

Let’s take a look at where each company is today in their bankruptcy proceedings. 

Voyager

On Twitter, the Voyager Official Committee of Unsecured Creditors said that they were finalizing liquidation procedures, meaning that Voyager can go “effective” with its bankruptcy plan, barring any objections from parties. 

“We are hopeful that initial distributions will begin in the next few weeks,” Voyager’s UCC said. 

Loading Tweet..

On April 26, Binance announced that it withdrew its offer to buy over $1 billion worth of assets from the bankrupt lender. This news came just days after Voyager reached a deal with the government to allow the previously blocked acquisition to move forward.

Loading Tweet..

Binance’s termination means that Voyager will directly distribute cash and crypto to customers through the Voyager platform once its Chapter 11 plan is effective.

Celsius

On Thursday, Celsius announced that the Court had approved the “distribution of the remaining 6% of Eligible Users’ Distributable Custody Assets (pure custody and transferred custody below $7,575 at the time of transfer) for a total of 100% of Eligible Users’ Distributable Custody Assets.”

Previously, eligible customers had only been able to withdraw 94% of the Distributable Custody Assets.

Loading Tweet..

The bankrupt lender seeks to get its books in order through a consolidation of Celsius Network Limited, its UK-based entity, and Celsius Network, its US-based entity.

A judge will decide in late July whether the consolidation should take place. 

Earlier this week, the company’s former CEO Alex Mashinsky and his legal team refuted claims made by New York Attorney General Letitia James. She had alleged back in January that Mashinsky had misled investors about the health of Celsius during his tenure as CEO. 

“[Mashinsky] told investors that Celsius would generate sustainably high returns by making low-risk collateralized loans to first-tier institutions and cryptocurrency exchanges as well as overcollateralized loans to retail borrowers,” the filing states.

Mashinsky also pushed back against claims that Celsius Earn accounts fall under the definition of securities. 

“Critically, the ‘Earn’ accounts at issue were not securities under well-established law and the Complaint fails to plead adequately the existence of securities or commodities in Celsius’s business model.”

In late April, Celsius started and adjourned an auction with NovaWulf, Fahrenheit LLC, and the Blockchain Investment Recovery Committee. The auction is still ongoing and resumed on Friday, May 5 at noon Eastern.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates.png

Research

Content Delivery Networks (CDNs) represent low-hanging fruit in a massive market ripe for Web3-driven disruption. The global CDN market was valued at ~$28B in 2024, and is projected to surpass $140B by 2034, (18.75% CAGR) underscoring the immense demand for efficient content delivery.

article-image

US dollars might technically be worth less, but it’s still good news

article-image

Apps are doing well, as is casino gaming, says Tom Schmidt of Dragonfly

article-image

Sponsored

Machine DeFi brings programmable peer-to-peer finance into contact with tangible machines that generate real-world value

article-image

What happens to your investment portfolio when the companies driving returns are no longer in it?

article-image

Wow, the ETF hype sure didn’t last long

article-image

The private sector lost 33,000 jobs in June; analysts had projected payrolls to add 100,000 positions