A few months back, Voyager Digital filed for insolvency after falling into heavy debt following the Terra network’s crash. The New York Bankruptcy Court ruling over the case has announced that the troubled lender can pay Customers with its store cash.
Judge Allows Voyager To Repay Debt With Cash In MCB Account
According to the reports, Michael Wiles, the ruling judge, gave an approving nod to the recovery proposal presented by Voyager. He said that the crypto firm has credible reasons to support the feasibility of its proposal working out fine.
The proposal entails the lender firm repaying its creditors with its cash stored in the Metropolitan Commercial Bank. Additionally, the court case revealed that Voyager has about 100k creditors.
Also, the firm affirmed that it possesses more than $110 million in crypto and cash in its custody. In addition, it claimed to have about $350 million in cash stashed away in its MCB account.
Moreover, the troubled lender said it keeps custody of cryptos worth $1.3bn. It claimed to have more than $650 million in cash and crypto loaned out to Three Arrows Capital, which is also insolvent currently.
The court approval is a beam of hope for the customers who had suffered losses since the firm went bankrupt. However, since the hearing started, the judge has not said what will happen to the customers’ frozen funds.
Voyager Rejects FTX Bid After Receiving Better Offers
According to the reports, Voyager’s defendant, Joshua Sussberg, revealed to the court that more bidders had shown interest in Voyager’s crypto assets. He added that many brought more enticing bids than the FTX crypto exchange.
Joshua continued that Samuel Bankman-Fried (SBF), the CEO of FTX, offered to exchange cash for Voyager’s crypto assets at the current market value. He said SBF also offered to allow Voyager clients who would create FTX wallets to have their claims back.
However, Joshua confirmed that the offer was rejected last week because it was a liquidation offer covered with an enticing façade. He added that the bid was, in fact, the lowest of all the bids the troubled lender firm has received so far.
Joshua did not hint at the nature, source, and worth of the other bids he claimed Voyager had received after FTX. However, he claimed that most of the new offers they received had better options for its customers. According to him, the bids would allow customers to receive above 30% of the fund they invested before the firm went insolvent.