Troubled cryptocurrency lender Voyager Digital has been granted approval to return some of New York’s Metropolitan Bank of Commerce (MCB) client funds, according to multiple news reports.
The ruling clears the way for Voyager Digital to return about $270 million in frozen client funds.
Customers of Voyager Digital could get some relief, as a judge presided over the bankruptcy proceedings, ruling that the crypto lender gave the court sufficient grounds to support its argument that its customers should be allowed access to Metropolitan Commercial’s funds. Bank held. The ruling clears the way for Voyager to return at least some of its customers’ cash deposits.
Voyager Digital had transferred funds into Metropolitan Commercial Bank accounts when it filed for bankruptcy on July 5. Once bankruptcy proceedings begin, funds in the account are frozen.
Fully intend to return client funds
Voyager Digital CEO Stephen Elrich said back in July that the company fully intends to deliver on its promise to users and to refund customer funds held in Metropolitan Merchant Bank accounts as soon as the reconciliation and fraud prevention process is complete. Following this statement, the company requested funds in the account on July 15.
Voyager has about $10 billion in debt, borrowed from about 100,000 creditors. However, Voyager Digital Not the only company that has been caught in choppy waters over the past few months, other brokerages and lenders are also in the crypto space, such as Three Arrows Capital. BlockFi and Celsius are going through a similar situation.
‘Higher and better’ deals are on the table
The cryptocurrency lender also revealed that its takeover offer was higher than those offered by FTX Exchange and Alameda, compared to the company’s public statements. Voyager Digital In a second day of hearings on Thursday, it said it had received interest from about 88 interested parties keen to bail out the troubled lender. It also added that the company is in discussions with more than 20 interested parties.
The Alameda and FTX bids were among the most high-profile bids submitted to lenders. Under the terms of the offer, Alameda will acquire all of Voyager’s assets and outstanding loans, with the exception of the loan to Three Arrows Capital. The company will then liquidate all assets and distribute funds through the FTX US exchange.
However, the bid was rejected on July 25 by Voyager Digital, which said it was not “maximizing value” for its customers. It also said that contrary to alleged inaccurate representations by Alameda and FTX, there are better offers on the table.
Disclaimer: This article is for informational purposes only. It is not intended or intended to be used as legal, tax, investment, financial or other advice.