Court allows Voyager Digital to return $270 million to customers

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A US bankruptcy court in New York has approved crypto platform Voyager Digital’s request to return to customers US$270 million held in a deposit account at the Metropolitan Commercial Bank (MCB), the Wall Street Journal reported.

See related article: Unconfirmed Voyager Crypto Refund Plan; fiat to be returned in full

Fast facts

  • The MCB funds were held by Voyager on behalf of the clients, and the court said the broker provided “sufficient basis” to support its argument that the funds should be returned to the clients.
  • While Voyager had asked the court to allow funds from the MCB deposit account to be returned to customers, a larger issue remains unresolved – how $1.3 billion in crypto assets on its owned platform the bankruptcy estate will be divided among the creditors.
  • Voyager’s attorney, Joshua Sussberg, told the court that FTX’s takeover offer was the lowest among several offers and that he was negotiating with FTX for a better offer.
  • Voyager Digital had deposit for Chapter 11 bankruptcy in New York, shortly after crypto hedge fund Three Arrows Capital (3AC) was allegedly ordered to liquidate in the British Virgin Islands.
  • 3AC defaulted on roughly US$650 million loan to Voyager, and FTX CEO Sam Bankman-Fried and other companies Free buy the assets and liabilities of 3AC at market prices, except for the exposure to 3AC.
  • Voyager had called the FTX offer a “low contract disguised as a white knight rescue” in a court filing.

See related article: Sam Bankman-Fried takes on Voyager for rejecting FTX proposal

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