The court approved Crypto Lender Voyager, undergoing bankruptcy proceedings for USD 270 million Plan, earlier this week.
On Friday, Crypto Lender Voyager informed publicly that it has planned to provide restore access to the customers to withdraw their money on August 11. This is the initial step taken by Voyager to return the customer’s money. Voyager, a crypto lending application, is undergoing a court case of bankruptcy filed by them a few months back.
Crypto Lender Voyager Approved To Reimburse Clients For $270 Million In Cash Deposits
The 270 USD Million plan consists of withdrawal of the funds from Metropolitan bank for the customer’s benefit. The back had filed a motion that supports Voyager‘s Request to honor withdrawals.
Voyager is one of the firms which struggled a lot amid crypto market turmoil and had filed for Chapter 11. Per their bankruptcy filing, they have had approximately 100,000 creditors and assets worth 1-10 Billion USD along with the same liabilities. Also, it suffered a massive loss from the implosion of Three Arrows Capital (a Crypto hedge fund). The customers had lent approximately a few billion in crypto assets locked up till now.
And now, the Toronto-based stock exchange has stopped Voyager’s trade and is being delisted from the platform. As per the survey, it has collapsed by 75 percent in the last few months.
Voyager is trying its best to offer a restructuring process to maximize the crypto value of the Application.
Earlier this week, the company got an order from the FDIC(Federal Deposit Insurance Corp) and Federal Reserve to remove all the claims that the government protected funds. According to regulators, the firm has a deposit account at Metropolitan Commercial Bank, and customers who invested through Voyager did not have any FDIC insurance.
Voyager Buyout Offers
Voyager had revealed they had received a better buyout than FTX offered. Approximately 88 parties have shown an interest in buying out Voyager, and they recently disclosed that they are talking with 20 parties.
Meanwhile, Joshua Sussberg (Voyager’s legal counsel) said that FTX had offered them the least than what various firms have offered. To which FTX had told, they offered their best offer for Voyager customers.
Voyager believes that FTX’s offer was a low ball bid, which only benefits Alameda FTX and doesn’t cater to the Voyager customers.
Many customers have raised their voices by writing letters to the court and on various social media applications. Even if legitimate corporations want to acquire Voyager, a crypto lender is concerned about its reputation and whether it has committed cash withdrawals or fraud.
During the covid 19 pandemic, Crypto lenders such as Voyager and Celsius have boomed, as many depositors came with a high-interest rate as it offered an easy way to get a loan compared to traditional banks. Two big coins (terra UST and terra luna) fell in May 2022, hurting lenders in the crypto market.