$270 million up for grabs
Voyager, one of the victims of the bear market and the crash of Terra has been approved to return funds to customers that were the victims of its bankruptcy. The company entered into bankruptcy after halting withdrawals and citing a downturn in market conditions that led to the collapse of the company.
The company is currently filing for Chapter 11 which allows for continued business operations while restructuring and paying creditors happens. The court gave approval for the firm to return up to $270 million to its customers. The approval was signed by a Judge Michael Wiles of the US Bankruptcy Court of New York. The funds will be held in a custodial account at the Metropolitan Commercial Bank.
The company has sought to honor withdrawals from customers by holding the funds in a custodial account. The bank acts as a cash custodian and customers cash flows to the banks which enables Voyager to utilize the funds. Voyager and MCB are then permitted to release the funds to the customers.
The initial amount showed in the bank account had reached $350 million but MCB reported to the bank that at the time of the approval the company only had about $270 million in the account. The company is allowed to return the cash to the customers but the court has yet to decided what to do with the $1 billion in crypto assets that are held by Voyager. This situation is still ongoing and a decision may not be finalized until the end of the year.