Crypto broker firm Voyager went for filing bankruptcy following its liquidation.
On Monday, 11th July, Voyager Digital came with a blog post with an update for their customers. It mentions that, On 5th July, 2022, Voyager deliberately began the restructuring process. The process falls under the Chapter 11 that would help create an appropriate solution to recommence access to the accounts as well as returning values to the respective customers. Further the blog post mentioned answers of several queries that users on the platform could have.
So, as it turns out, customers can now withdraw their deposits in fiat like in USD stored on the Voyager Digitial’s platform. The crypto firm will enact this after some adjustments and finish the fraud prevention process. However, there is no indication regarding approval of cryptocurrency refunds.
The bankruptcy filing of Voyager came at the peak of its troubles recently. This is due to one of its prominent clients, hedge fund manager firm Three Arrows Capital, defaulting on loans. Earlier, 3AC also filed for bankruptcy under Chapter 15. This came in the wake of its efforts to save its assets from lenders. It was reported earlier that a British Islands court had given liquidation orders to a hedge fund manager.
As reported, the reorganization plan of Voyager includes providing proportional share of crypto to its clients. Also, they will get a corresponding share of proceeds received from 3AC. As per the plan, users will also receive the shares from the company and its existing tokens. However, this reorganization plan is yet to get approval from the court.
Voyager had made the claims to possess crypto assets worth about $1.3 billion on its platform. On top of that, Three Arrows Capital owes additional $650 million worth of funds. Crypto broker firm said that the USD deposits of its clients are held by the New York’s Metropolitan Commercial Bank and Federal Deposit Insurance Corporation insured this amount for up to $250,000.
Source: https://www.thecoinrepublic.com/2022/07/13/voyager-digital-upto-refund-usd-deposits-for-now-but-not-crypto/