Summary:
The team at Voyager Digital has provided an update on the status of customers’ USD and crypto held at the lending platform.
According to the team at Voyager, all the USD deposits held on the platform belonging to its customers will be returned once reconciliation and fraud prevention is carried out.
The team also explains that all its customers’ USD is held ‘in a special type of bank account called a For Benefit of Customers (“FBO”) account at Metropolitan Commercial Bank of New York (“MCB”).’ In addition, the USD held in the FBO account is equal to the amount of USD in its customers’ accounts.
Furthermore, all the USD in customers’ cash accounts held at MCB is FDIC insured. Consequently, each customer is covered up to a maximum of $250k.
The team at Voyager also declared that it currently holds roughly $1.3 billion worth of crypto plus $650 million in claims against Three Arrows Capital. As a result, it proposes a distribution of assets to its customers through a combination of the following, with each customer having ‘the ability to select the proportion of crypto and common equity they receive, subject to certain maximum thresholds.’:
In the concluding section of the update, the Voyager team stresses that the proposed distribution of assets to its customers is subject to change. They state:
The plan is subject to change, negotiation with customers, and ultimately a vote.
In Voyager’s case, customers are the primary creditors and will have an opportunity to vote on the proposed Plan of Reorganization. We put together a restructuring plan that would preserve customer assets and provide the best opportunity to maximize value.
In addition, the Company is pursuing various strategic alternatives to evaluate the value of the standalone company compared with a third-party investment or sale.
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