Voyager Approved By Court To Return $270 Million To Customers

The bankruptcy court has granted Voyager Digital permission to return a portion of customer funds locked at Metropolitan Commercial Bank that have been frozen so far. Besides, the company also revealed that it has received a lot of offers to buy back at a higher price than AlamedaFTX.

Voyager will return $270 million to its customers

U.S. Bankruptcy Court Judge Michael Wiles had Voyager return part of their customers’ cash deposits.

According to an August 4 report from the Wall Street Journal, Judge Wiles stated that Voyager had provided “sufficient basis” for its claim that customers should access custodial accounts held at Commercial Bank. Metropolitan Commercial Bank (MCB), which is understood to hold $270 million in cash.

When the lending platform filed for bankruptcy on July 5, there were funds hidden in the bank account. When bankruptcy proceedings were under way, those funds were blocked.

The firm apparently requested that the money in MCB be returned on July 15 after Voyager Digital CEO Stephen Ehrlich stated in July that he intended to refund customer payments from MCB once a “reconciliation and fraud prevention process” was finished.

Voyager is not the first cryptocurrency brokerage, lender, or investment organization that has experienced difficulties for both itself and its users. The firm owes a total of no more than $10 billion to a little over 100,000 creditors. Along with them, Celsius, Three Arrows Capital, BlockFi, and other companies have been drawn into the ongoing drama.

In its Hearing Presentation on Monday, August 4, Voyager stated that it had received word from 88 interested parties looking to bail out the company from its financial woes, adding that “the active discussions” with more than 20 potential interested parties. The buyback offers are all “higher and better” than those offered by AlamedaFTX in July.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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