Bankrupt Crypto Firm Voyager Digital Approved to Release $270 Million in Cash Deposits

The present defunct and bankrupt Voyager Digital has been approved by the tribunal to administer $270 cardinal successful funds to creditors and affected customers. The quality follows the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve Board ordering Voyager to region immoderate statements that allege Voyager is FDIC insured. The U.S. Bankruptcy Court successful New York and Judge Michael Wiles person allowed Voyager’s custodian, Metropolitan Commercial bank, to merchandise the $270 million.

New York Bankruptcy Court Approves Release of $270 Million From Voyager’s Custodian

The TSX-listed crypto speech Voyager Digital (OTCMKTS: VYGVF) revealed astatine the extremity of June that the hedge money Three Arrows Capital owed the institution $655 million. Then connected July 1, 2022, Voyager suspended trading, deposits, and withdrawals successful bid to woody with turbulent crypto “market conditions.”

A week later, Voyager filed for bankruptcy extortion aft citing “prolonged volatility and contagion successful the crypto markets.” Voyager shares exchanged hands astatine the stock’s highest successful April 2021 astatine $29.86 per share, and today’s shares are swapping for $0.34 per unit.

Now the presiding bankruptcy tribunal judge, Michael Wiles from New York, has allowed $270 cardinal to beryllium released from Voyager’s custodian Metropolitan Commercial slope (MCB), the Wall Street Journal (WSJ) reported.

MCB explained to the WSJ that it held the $270 cardinal erstwhile Voyager filed voluntary petitions for reorganization nether Chapter 11. At the extremity of July, laminitis and CEO of the crypto speech FTX, Sam Bankman-Fried, detailed that FTX was offering aboriginal liquidity to Voyager customers.

In summation to Voyager, Three Arrows Capital (3AC) has filed for Chapter 15 bankruptcy protection, and the crypto lender Celsius filed for Chapter 11 bankruptcy. Celsius customers person been precise upset astir the firm’s downturn, arsenic the institution claimed it had astir 1.7 cardinal customers earlier it collapsed.

Celsius customers precocious pleaded with the bankruptcy justice to merchandise funds held connected the platform. One lawsuit said it was an “emergency situation” arsenic helium needed his wealth to “simply to support a extortion implicit my household and nutrient connected their table.”

It is estimated that Voyager volition implicit the bankruptcy process by the extremity of September 2022, but there’s allegedly $1.3 cardinal worthy of crypto stemming from 3.5 cardinal customers stored connected Voyager’s platform. CNBC reported connected August 3, that Voyager’s CEO Steven Ehrlich obtained much than $30 cardinal by selling Voyager equity successful February and March 2021.

While Voyager is simply a publically traded firm, past twelvemonth it adopted an automatic securities disposition program (ADSP) connected December 31, 2021, aft Ehrlich’s equity sales. CNBC’s Rohan Goswami reports that connected January 20, 2022, Voyager’s CEO removed the ADSP structure. Voyager Digital besides had a woody with the Dallas Mavericks and concern relationships with Genesis Global Capital and Galaxy Digital.

What bash you deliberation astir the justice successful Voyager’s bankruptcy lawsuit allowing $270 cardinal to beryllium released from the company’s custodian MCB? What bash you deliberation astir Ehrlich cashing retired Voyager equity amid the stock’s terms peak? Let america cognize your thoughts astir this taxable successful the comments conception below.