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