According to the reports, Voyager Digital received the permission to return their customers 270 million USD worth cash. The crypto firm was dealing with many issues after filing for bankruptcy. One of these major issues was seeking approval from the court to return their customers cash.
The funds that Voyager Digital is allowed to proceed are held at Metropolitan Commercial Bank’s (MCB) custodial account. These funds primarily belonged to the customers that Voyager was holding on their behalf. While allowing the crypto platform, the court said that the firm provided sufficient and strong reasons to support their arguments of returning funds to their customers.
Although this issue to release 270 million USD worth funds to users was resolved, yet several issues remained entangled. Take the issue for instance where the question on Voyager Digital’s 1.3 billion USD worth crypto assets. The dilemma of how the assets falling under the bankruptcy estate would be up for the distribution among its users, still stays.
Attorney Joshua Sussberg for Voyager, said in the court that the company was offered a buyout from FTX. However, the offer of Bahamian crypto exchange was the lowest out of all the offers that the crypto firm has received. Still they are making efforts and negotiating for a better deal with FTX.
Last month, beleaguered Voyager Digital filed Chapter 11 bankruptcy in the New York Southern District Court. It’s worth noting that the firm got into troubles after Three Arrows Capital defaulted on its loan to Voyager Digital. Crypto hedge fund 3AC was also ordered to liquidate as the firm was unable to continue anymore.
Three Arrows Capital had a loan amount of 650 million USD to pay back to Voyager. Crypto hedge fund received buying offers from several entities like FTX CEO, Sam Bankman-Fried and others. However the offer only included taking over only the assets and liabilities belonging to the company at the market prices, not their loan outstandings.
Source: https://www.thecoinrepublic.com/2022/08/05/voyager-digital-allowed-to-return-270-million-usd-belonging-to-customers/