Bankrupt Digital Voyager Agrees To Release $270 Million In Cash Deposit – Bitcoin News

The court has approved the now-defunct Voyager Digital to distribute $270 million in funds to aggrieved creditors and customers. The news comes after the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve asked Voyager to remove any data claiming that Voyager is FDIC insured. US Bankruptcy Court in New York and Judge Michael Wales allowed the trustee of Voyager, Metropolitan Commercial Bank, to release $270 million.

New York bankruptcy court agrees to release $270 million from Voyager’s trustee

TSX-listed crypto exchange Voyager Digital (OTCMKTS: VYGVF) revealed at the end of June that hedge fund Three Arrows Capital owed the company $655 million. Then, on July 1, 2022, Voyager suspended trading, deposits, and withdrawals in order to deal with turbulent “market conditions” for cryptocurrencies.

A week later, Voyager filed for bankruptcy protection after citing “prolonged volatility and contagion in the cryptocurrency markets.” Voyager shares are trading at their peak in April 2021 at $29.86 per share, and today’s shares are exchanging for $0.34 per unit.

Now, a bankruptcy court judge, Michael Wales of New York, has allowed $270 million to be released from the Metropolitan Commercial Bank (MCB), and the Wall Street Journal (WSJ). mentioned.

MCB explained to the WSJ that it had $270 million in possession when Voyager filed voluntary petitions for reorganization under Chapter 11. At the end of July, Sam Bankman-Fried, founder and CEO of crypto exchange FTX, explained that FTX was providing early liquidity to Voyager clients.

In addition to Voyager, Three Arrows Capital (3AC) has filed for Chapter 15 bankruptcy protection, and crypto lender Celsius has filed for Chapter 11 bankruptcy. The centenarians were very upset about the company’s decline, like the company claimed It had nearly 1.7 million customers before its collapse.

Celsius clients recently appealed to a bankruptcy judge to release funds held on the platform. One customer said it was an “emergency” because he needed his money “just to keep a roof over my family and food on their table.”

It is estimated that Voyager will complete bankruptcy by the end of September 2022, but there is allegedly $1.3 billion worth of crypto stemming from 3.5 million customers stored on the Voyager platform. CNBC mentioned On August 3, Stephen Ehrlich, CEO of Voyager, earned more than $30 million through the sale of Voyager stock in February and March 2021.

While Voyager is a publicly traded company, last year it adopted an Automatic Securities Disposal Plan (ADSP) on December 31, 2021, following sales of Ehrlich shares. CNBC Rohan Goswami Reports indicate that on January 20, 2022, the CEO of Voyager removed the ADSP structure. Voyager Digital also has a deal with the Dallas Mavericks and business relationships with Genesis Global Capital and Galaxy Digital.

Tags in this story

$270 million, ADSP, Bankruptcy Court, Bankruptcy Process, Cash Deposits, Celsius, Celsius Clients, Chapter 11 Bankruptcy, Court, Dallas Mavericks, Galaxy Digital, Genesis Global Capital, Judge Michael Wales, Judge Michael Wales, MCB, Metropolitan Bank Commercial, Michael Wales, New York, Stock, Stephen Ehrlich, Voyager Digital, Voyager, Voyager Stock

What do you think of the judge in Voyager’s bankruptcy case allowing $270 million to be released from MCB and the company’s trustee? What do you think about Ehrlich pulling Voyager stock amid peak stock price? Tell us your thoughts on this topic in the comments section below.

Jimmy Redman

Jamie Redman is the head of news at News and a technology financial journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for News about the disruptive protocols emerging today.

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