Beleaguered crypto lender Voyager Digital has been cleared to return some of the customer funds locked up at the Metropolitan Commercial Bank (MCB) by the judge presiding over the company’s bankruptcy proceedings underway in New York, according to several news reports.
The ruling clears the path for Voyager Digital to return around $270 million of frozen customer funds.
Relief For Customers
There was some relief in store for Voyager Digital customers, with the judge presiding over the bankruptcy proceedings ruling that the crypto lender had provided the court with a sufficient basis to support its contention that its customers should be allowed to access the funds which the Metropolitan Commercial Bank held. The ruling clears the path for Voyager to return at least some of its customer cash deposits.
Voyager Digital had transferred the funds into the Metropolitan Commercial Bank account when it filed for bankruptcy on the 5th of July. Once the bankruptcy proceedings began, the funds stashed in the account were frozen.
Fully Intend To Return Customer Funds
Stephen Elrich, Voyager Digital CEO, stated back in July that the company fully intends to honor its commitment to its users and return the customer funds held in the Metropolitan Commercial Bank account as soon as the reconciliation and fraud prevention process concluded. Following this statement, the firm asked for the funds held in the account on the 15th of July.
Voyager is in steep debt, which amounts to around $10 billion, a sum borrowed from around 100,000 creditors. However, Voyager Digital is not the only firm that has run into choppy waters over the past few months, with other brokerages and lending firms in crypto, such as Three Arrows Capital. BlockFi and Celsius are going through similar situations.
“Higher And Better” Offers On The Table
The crypto lender also revealed that it had higher and better buyout offers than those tabled by the FTX exchange and Alameda, in contrast with the firm’s public statements. Voyager Digital stated in its Second Day Hearing Presentation, held on Thursday, that it had received interest from around 88 interested parties that were keen on bailing out the struggling lender. It also added that the company was in discussions with over 20 interested parties.
The Alameda-FTX Bid
The Alameda and FTX bid was among the most high-profile bids submitted to the lender. According to the terms of the bid, Alameda would purchase all of Voyager’s assets and outstanding loans, except the loans to Three Arrows Capital. The firm would then liquidate all assets and distribute the funds through the FTX US exchange.
However, this bid was rejected by Voyager Digital on the 25th of July, with the company stating that it was not “value maximizing” for its customers. It also stated that there were better offers on the table, contrary to the alleged inaccurate statements emanating from Alameda and FTX.
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