Voyager customers can withdraw up to $100K in cash via ACH transfer
Following approval of the bankruptcy judge, cryptocurrency brokerage firm Voyager plans to return $270 million in customer cash. The amount represents a small portion of investors’ crypto holding that have been locked up since the company filed for bankruptcy in April.
Judge Michael Wiles, who is overseeing the bankruptcy case, approved the proposal to restore access to cash held for the benefit of Voyager’s customers at Metropolitan Commercial Bank. He ruled that the company provided “sufficient basis” to support its request and anticipates customers will receive their funds in about 5-10 business days after making their requests.
Once cash withdrawals are enabled, Voyager customers can withdraw up to $100K in cash via an automated clearing house (ACH) transfer in a 24-hour period.
The news comes barely a week after lawyers representing Voyager Digital have described a joint proposal to bail out the bankrupt crypto lender from FTX and Alameda as a “low-ball bid dressed up as a white knight rescue.”
Voyager has been thrown a lifeline from crypto billionaire Sam Bankman-Fried, offering to provide its customers with early-access liquidity. Under the proposed restructuring deal, West Realm Shires — owner and operator of FTX US and Alameda Ventures — would buy all of Voyager’s crypto assets and loans in cash at market value, except the loans to bankrupt crypto hedge fund Three Arrows Capital.
If approved, Voyager customers would be able to claim a portion of their funds that were frozen earlier last month. Meanwhile, FTX would offer customers an option to receive their share of claims by opening a new account at FTX.
In response, Voyager’s bankruptcy lawyers have entered a public spat with Sam-Bankman Fried whose offer was described by them as harmful, highly misleading and only benefits FTX.
Earlier in June, Voyager Digital entered into an agreement with Alameda Ventures to extend a previous credit facility, which was intended to help it meet customer liquidity needs. Bankman-Fried-led Alamada Research offered to extend a credit line of $200 million in cash and USDC alongside a 15,000 BTC revolver.
In addition to this facility, Voyager has approximately $152 million cash and owned crypto assets on hand, as well as $20 million of cash that is restricted for the purchase of USDC. The TSX-listed firm also issued 3AC a formal notice of default to recover roughly $660 million allegedly loaned to the Singapore-based hedge fund.