Crypto lender Voyager Digital has had its requested liquidation plan approved by a U.S. bankruptcy judge, putting an end to its efforts to reorganize under Chapter 11. Last July, Voyager filed for bankruptcy protection due to volatility in the cryptocurrency markets and a default on a large loan to crypto hedge fund Three Arrows Capital. The customers will only recover about 35% of their cryptocurrency deposits due to failed attempts to sell the assets during the bankruptcy process. Voyager was initially seeking to sell its assets for $1.42 billion to FTX, but the deal fell through when FTX imploded in November. Later, Binance.US signed a $1.3 billion offer, which was called off on April 25. Voyager’s customers’ recovery hopes are now heavily dependent on the litigation outcome with FTX. There are speculations that the Securities and Exchange Commission may have played a role in Binance.US’s failed acquisition. Some industry experts believe the SEC’s increased scrutiny of the crypto industry may have played a role in the failed acquisition. Other crypto lenders filing for bankruptcy in 2022 include Celsius Network, BlockFi, and Genesis Global Capital. France has been welcoming these firms due to the regulatory uncertainty in the United States.