Voyager Digital said in a Monday blog update that customers’ USD deposits will be returned in full “after a reconciliation and fraud prevention process” but it has yet to receive the green light on its cryptocurrency refund proposal.
See related article: Voyager faces delisting from Toronto Stock Exchange after bankruptcy filing
- Voyager filed for Chapter 11 bankruptcy last week after troubled hedge fund Three Arrows Capital (3AC) filed for Chapter 15 bankruptcy to protect its assets from creditors after reportedly receiving liquidation orders from a British Virgin Islands court.
- Voyager clients may receive a mix of pro-rata share of crypto, pro-rata share of proceeds from 3AC recovery, pro-rata share of common shares in the newly organized company and pro-rata share of existing Voyager tokens, its reorganization plan proposes.
- The reorganization plan has not been approved by the court yet.
- Voyager claimed it has around US$1.3 billion worth of crypto assets on the platform in addition to the US$650 million owed by 3AC.
- Client USD deposits are held by the Metropolitan Commercial Bank (MCB) of New York and insured by the Federal Deposit Insurance Corporations for up to US$250,000, Voyager said.
- This means that in the case of MCB’s failure to pay back customer deposits, Voyager users will be refunded by the FDIC.
See related article: Voyager Digital issues notice of default to 3AC