The US bankruptcy court has granted approval to Voyager Digital to pay back $270 million worth of funds to its customers, WSJ reports
The firm had filed for chapter 11 bankruptcy in July which rendered the customers incapable of accessing their stored funds.
Per a report published by Wall Street Journal, Bankrupt crypto lender platform Voyager Digital has been given a green signal by the US bankruptcy court in New York to return $270 million worth of funds to its customers.
Voyager Digital Will Return $270 Million Worth Of Funds To Its Customers.
According to WSJ , Michael Wiles, the presiding judge at the US bankruptcy court said that Voyager was able to provide a “sufficient basis” to support its argument that asserts that customers should be permitted to access the custodial account held at Metropolitan Commercial Bank.
Voyager Digital, a prominent crypto lender, had collapsed earlier this month and filed for Chapter 11 bankruptcy. The bankruptcy filing revealed how Voyager did not maintain a single wallet for each of its customers but used a commingled wallet to store all cryptocurrency funds of its customers.
The bankruptcy filing further noted that the platform was hosting more than 100,000 creditors at the time, holding funds in between $1-$10 billion, with both assets and liabilities included.
The company had also received an offer from crypto exchange FTX and Alameda Research to purchase all of Voyager’s assets and outstanding loans excluding the defaulted loan that it had lent to Three Arrows Capital. The plan further included liquidation of assets and distributing the funds later via USD through the FTX exchange
However, Voyager rejected Alameda’s offer last week citing that the offer was not “value maximizing” for its customers.
Per a Bloomberg report, Voyager’s attorney Joshua Sussberg later added how the company had received better bids and offers than the one proposed by crypto exchange FTX.
Sussberg also stated how the other offers that the firm had received would allow its customers to gain more than 30 cents on the dollar. Voyager did not provide any details on the kind of bids it had received earlier.
Voyager’s second-day presentation also disclosed that the firm had been contacted by 88 potentially interested parties during its restructuring process, in which 46 parties have signed non-disclosure agreements while 22 parties are active in its sales operations.
Per the report, the deadline for the bid is August 26 and the final hearing for the same will be held on September 7.
Founded in October 2018, Voyager was launched as a digital crypto platform by Stephen Stephen Ehrlich, Philip Eytan, and Uber co-founder Oscar Salazer. The company prospered during 2020-2021 by attracting depositors by offering them high-interest rates and readily available loans.
However, it collapsed earlier this month, citing the ongoing onslaught of crypto market crashes, which rendered the firm dry and incapable of paying back funds to its creditors and customers.