Court OKs Voyager Digital to return US$270 mln to customers

A U.S. individual bankruptcy court docket in New York accepted crypto platform Voyager Digital’s ask for to return to buyers US$270 million held in a custodial account at Metropolitan Commercial Bank (MCB), the Wall Road Journal described. 

See relevant article: Voyager crypto refund system unconfirmed fiat to be returned in comprehensive

Fast details

• The funds at the MCB had been held by Voyager on behalf of consumers, and the court docket said the broker supplied a “sufficient basis” to support its argument that the cash really should be returned to prospects. 
• While Voyager experienced questioned the court docket to permit the return of the funds in the MCB custodial account to customers, a more substantial issue continues to be unresolved — how US$1.3 billion in crypto property on its platform belonging to the bankruptcy estate will be dispersed among collectors.
• Voyager legal professional Joshua Sussberg informed the court docket that FTX’s provide of a buyout is the most affordable between quite a few offers and it is negotiating with FTX for a greater offer. 
• Voyager Electronic had filed for Chapter 11 individual bankruptcy in New York, soon right after crypto hedge fund A few Arrows Capital (3AC) was reportedly ordered to liquidate in the British Virgin Islands. 
• 3AC unsuccessful to pay back back a personal loan of all-around US$650 million to Voyager, and FTX CEO Sam Bankman-Fried and other corporations supplied to get 3AC’s belongings and liabilities at current market prices, apart from the publicity to 3AC. 
• Voyager had termed the FTX supply a “low-ball offer dressed up as a white knight rescue” in a court submitting. 

See similar posting: Sam Bankman-Fried lashes out at Voyager for rejecting FTX’s proposal