Voyager Digital Can Repay Customers with USD 270M MCB Holdings, Judge Rules

Voyager Digital Can Repay Customers with USD 270M MCB Holdings, Judge Rules
Source: Adobe/Игорь Головнёв

The troubled crypto platform Voyager Digital has been given the inexperienced mild to return USD 270m price of funds to its prospects.

The transfer was permitted by the Bankruptcy Court in New York the place the corporate’s case is being heard, the Wall Street Journal reported.

The presiding choose, Michael Wiles, was quoted as stating that Voyager had supplied “sufficient basis” to again up its claims that prospects ought to be allowed to utilize the funds the corporate holds in a custodial fiat account on the Metropolitan Commercial Bank (MCB).

Bigger query marks nonetheless stay over the corporate’s cryptoasset holdings, nevertheless. Voyager’s chapter filings present that the corporate has over 100,000 collectors. As reported, the corporate claims it has over USD 110m of money and crypto available, along with greater than USD 350m of money held within the For Benefit of Customers account at MCB. Voyager additionally stated it has roughly USD 1.3bn of cryptoassets on its platform, plus claims towards Three Arrows Capital (3AC) of greater than USD 650m. As reported, Voyager issued a discover of default to 3AC for failure to make the required funds on its beforehand disclosed mortgage of BTC 15,250 and USDC 350m.

While the information of a payout from the MCB fund can be welcome to beleaguered Voyager prospects, the court docket remains to be but to rule on the destiny of the funds nonetheless frozen on the Voyager platform.

Per Bloomberg, an lawyer representing Voyager additionally advised the court docket that the lender had already acquired “multiple bids for its assets in excess of an earlier offer” from the crypto change FTX and Alameda Research. The latter is a quantitative crypto buying and selling agency that was based by the FTX CEO Samuel Bankman-Fried.

The lawyer, Joshua Sussberg of the authorized agency Kirkland & Ellis, claimed that FTX’s bid to purchase Voyager’s crypto holdings for money at market worth – whereas additionally providing Voyager prospects the choice to obtain their claims supplied they open FTX wallets – had been rejected by Voyager.

The FTX supply was dismissed final week as a “low-ball liquidation bid dressed up as a white knight rescue,” with Sussberg telling the court docket stating that “of the offers received by Voyager so far,” this was “actually the lowest” to have been tabled.

While Sussberg refused to provide additional particulars of the rival bids, the lawyer did declare that these provides would let prospects get well far more than USD 0.30 for every greenback that they had invested with Voyager.
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Compiled by Coinbold

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