Voyager Digital revealed in June that hedge fund Three Arrows Capital owed it $655 million. Then, on July 1, 2022, the company suspended trading on its platform. She indicated that she had to stop deposits and withdrawals to weather the crypto winter. A week later, it filed for bankruptcy protection. Recently, the New York bankruptcy court, presided over by judge Michael Wiles, authorized Voyager to release $270 million from its custodian, the Metropolitan commercial bank.
Voyager Digital will repay its debts!
According a tweet from Bitcoin News on August 5, the company “Voyager Digital has been authorized to distribute $270 million in funds to affected customers“. Sure enough, the court approved for the crypto company to release funds for repay customers and creditors. Voyager Digital will need to release $270 million in cash deposits.
The Metropolitan commercial bank, Voyager’s custodian, will be responsible for releasing these funds. It must be said that Voyager’s custodian said it had held the $270 million for a while. Indeed, this was already the case when the company filed voluntary Chapter 11 reorganization applications.
Moreover, apart from Voyager Digital, other cryptocurrency companies have gone bankrupt this year. For example, Three Arrows Capital (3AC) filed for Chapter 15 bankruptcy protection. Similarly, cryptocurrency lender Celsius has filed for Chapter 11 protection.
Voyager Digital is expected to complete the bankruptcy process by the end of September 2022. 3.5 million customers hope to recover all of their assets. Note that there would be 1.3 billion dollars of cryptocurrency blocked on the Voyager platform.
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