Voyager Asks Bankruptcy Court To Handle Over $350M In Customer Withdrawals

Voyager Digital has asked a federal bankruptcy court to honor more than $350 million in customer withdrawals from Metropolitan Commercial Bank.

Voyager asks bankruptcy court to honor withdrawals

According to a court document submitted late Thursday, cryptocurrency broker Voyager Digital has asked a federal bankruptcy court for authority to fulfill customer withdrawals for the more than $350 million held by Metropolitan Commercial Bank.

According to a statement released by Voyager on July 6, the company has roughly $1.3 billion in cryptocurrency assets on the platform and more than $350 million in a For Benefit of Customers (FBO) account at Metropolitan Commercial Bank. The business added that it has lawsuits against Three Arrows Capital for more than $650 million.

“The debtors have determined, in their business judgment, that failure by the debtors to honor withdrawals any longer could materially harm customer morale during these Chapter 11 cases,” 

“Reinstating access to withdrawals will alleviate customer concerns that access to their cash held in the [Metropolitan Commercial Bank] accounts, and the integrity of the platform, is restored.”

The company’s July 14 filing with the US Bankruptcy Court for the Southern District of New York said.

In its court filing, Voyager also asks for permission to conduct more financial operations. These include “providing related relief,” “sweeping funds” from third-party exchanges, executing “ordinary course reconciliation” of the client accounts, continuing bitcoin staking, and liquidating cryptocurrency from customer accounts with negative balances.

A hearing has been scheduled for August 4 at 11:00 a.m. Eastern Time. 

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