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A U.S. bankruptcy court in New York approved crypto platform Voyager Digital’s request to return to customers US$270 million held in a custodial account at Metropolitan Commercial Bank (MCB), the Wall Street Journal reported.
See related article: Voyager crypto refund plan unconfirmed; fiat to be returned in full
Fast facts
- The funds at the MCB were held by Voyager on behalf of customers, and the court said the broker provided a “sufficient basis” to support its argument that the funds should be returned to customers.
- While Voyager had asked the court to allow the return of the funds in the MCB custodial account to customers, a larger issue remains unresolved — how US$1.3 billion in crypto assets on its platform belonging to the bankruptcy estate will be distributed among creditors.
- Voyager attorney Joshua Sussberg informed the court that FTX’s offer of a buyout is the lowest among several offers and it is negotiating with FTX for a better deal.
- Voyager Digital had filed for Chapter 11 bankruptcy in New York, shortly after crypto hedge fund Three Arrows Capital (3AC) was reportedly ordered to liquidate in the British Virgin Islands.
- 3AC failed to pay back a loan of around US$650 million to Voyager, and FTX CEO Sam Bankman-Fried and other businesses offered to buy 3AC’s assets and liabilities at market prices, except the exposure to 3AC.
- Voyager had called the FTX offer a “low-ball deal dressed up as a white knight rescue” in a court filing.
See related article: Sam Bankman-Fried lashes out at Voyager for rejecting FTX’s proposal