Voyager has been granted approval to return $270 million worth of funds back to customers. It has also reportedly received many purchase offers.
Voyager Digital has received approval from the court to return $270 million worth of funds back to customers. Judge Michael Wiles of the U.S. Bankruptcy Court in New York said that there was sufficient basis to support the argument that customers who are given access to the custodial account held at the Metropolitan Commercial Bank.
Voyager had asked for permission to honor those customers’ withdrawal requests, and those funds were held at the Metropolitan Commercial Bank. This was one of the bigger issues in the bankruptcy proceedings, and both Voyager and the customers will be pleased to hear the news.
The Chapter 11 bankruptcy filing showed that Voyager held $1.3 billion in customer assets across 3.5 million active users. Only about $270 million was held in the Metropolitan Commercial Bank FBO accounts.
The approval to return these funds eliminates some of the issues the lender is dealing with, though there will be much more to go. There will be many more decisions to be made before it is determined how customers get access to the other funds.
Voyager has been in the news frequently for many reasons — one of which is the fact that FTX had attempted to acquire it. Voyager refused the offer because it believed that it was too low. The company has said that it has received offers from several other entities — as many as 88 offers.
It remains in active discussion with over 20 interest parties, and this adds to an already high-profile case. There has been no word on the companies themselves, though it is likely to be a well-known name. In any case, it is likely that an update on this will come out in the following weeks.
Voyager’s case remains one to watch and will have a telling effect on the path forward for the crypto market. Like Three Arrows Capital and Celsius Network, it will serve as a lesson to the many similar crypto companies that exist out there.