Voyager customers can withdraw up to $100K in cash via ACH transfer

abdelaziz Fathi

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.

  • Read this next

    Digital Assets

    Japan Is Rapidly Emerging As A Global Leader In Compliant Crypto Payments

    Japan is often hailed as one of the most forward-thinking nations in the crypto industry, with its government taking a very positive stance on the potential of concepts such as Web3. 

    Digital Assets

    Kraken launches institutional arm

    “If you already work with Kraken, you know how much we care about offering high quality products and a client-first experience. We’ve been the leading crypto exchange for more than a decade and through Kraken Institutional, we’ll offer the same deep expertise and cutting-edge technology to propel trading excellence for institutions.”

    Fintech

    Centroid integrates with brokerage solutions provider GTN

    “We are thrilled to integrate GTN into Centroid Bridge, our multi-asset connectivity bridging engine. This integration allows our clients to gain access to the wide range of multi-asset products offered by GTN.”

    Podcasts, Women of the Industry

    FF Podcast delves into the rise of prop trading as Brokeree releases Prop Pulse

    In the latest FinanceFeeds Podcast, Tatiana Pilipenko discusses Prop Pulse, Brokeree Solutions’ platform for prop firms and retail brokers aiming to delve into prop trading. Offering a flat fee structure, Prop Pulse emerges as a scalable solution in an era where successful traders increasingly prefer prop firms over traditional retail brokers.

    Inside View

    Scalping or day trading?

    Among the many popular trading styles with both beginners and experienced traders are scalping, which allows you to extract small portions of profit from each price movement, and day trading, which aims to trade over a single day. In this article, you will learn what scalping and day trading are and their differences and peculiarities. Ultimately, you will learn what to look for to understand which trading style is right for you.

    Crypto Insider

    Unveiling Plasma Next: INTMAX’s Solution to Scale Ethereum with Stateless Layer

     INTMAX has launched Plasma Next on the mainnet α, a groundbreaking Layer 2 zkRollup, revealed by co-founder Leona Hioki at ETH Denver. This innovation offers scalability with constant costs per block, merging Plasma’s scalability goals with zkRollups’ security.

    Fintech

    Nuam selects Vermiculus for clearing system in Chile, Colombia, and Peru

    “We are proud to deliver a system that plays an integral role in the core of this historical merger, empowering one of Latin America’s most crucial markets with VeriClear’s state-of-the-art technology, together with our deep market expertise.”

    Retail FX

    Moomoo launches super app in Malaysia

    “As an investment platform connecting 21 million retail investors globally, we envision collaborating with exchanges, regulatory bodies, and partners in the visible future to become the gateway, connecting Malaysia’s investment products to global capital and investors.”

    Executive Moves

    FXPA elects Joe Hoffman as new Chair in its 10th anniversary

    “The opportunity to serve as Chair of the FXPA is truly an honor, and I am committed to upholding the exceptional work of a FXPA. Given the recent market fluctuations due to global tensions, inflationary pressures, shifts in monetary policy, as well as the outcome of the US election and the risk of recession, brings the potential for more FX volatility in 2024. I am dedicated to expanding the FXPA’s membership and I’m excited about collaborating with all members to echo the unified voice of the FX market.”

    <