Voyager secures court approval to refund $270M, says it received better offers than FTX bid News ▸ US ▸ Bankruptcy
Voyager secures court approval to refund $270M, says it received better offers than FTX bid
Judge Michael Wiles ruled that Voyager had presented a "sufficient basis" to allow its customers access to their funds at the Metropolitan bank.
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Updated: Aug. 5, 2022 at 2:17 pm UTC
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Struggling crypto lender Voyager Digital has been allowed to return its customer’s $270 million deposited with Metropolitan Commercial Bank, The Wall Street Journal reported on August 4.
According to the report, Judge Michael Wiles ruled that Voyager had presented a “sufficient basis” to allow its customers access to their funds at the bank.
The crypto lender had requested the court’s permission to honor withdrawals from its For Benefit of Customers (FBO) account with Metropolitan bank. The bank had also filed a motion that supported Voyager Digital’s request to honor these withdrawals.
Voyager has received better buyout offers
Voyager revealed that it had received better buyout offers than the one offered by FTX.
The firm claimed that as many as 88 parties had shown interest in buying out the company and said it is in active discussions with over 20 of them.
Additionally, Voyager said several offers are “higher and better than AlamedaFTX’s proposal.” Voyager counsel Joshua Sussberg reportedly told the court that the offer from FTX is the lowest the firm has received.
There is no further information about the other bids.
FTX had said its offer for Voyager was the best for its customers — a view countered by the distressed company.
On the other hand, Voyager described FTX’s offer as a low-ball bid that only benefits AlamedaFTX and doesn’t offer full value for customers.
The firm said it had sent a cease and desist letter to AlamedaFTX over the inaccurate public statements it has been making about the bid.
Customer concerns
The crypto lender mentioned that its customers had voiced their concerns through letters to the court and social media platforms.
According to the crypto lender, some of the concerns have been about whether Voyager committed fraud, cash withdrawals, and if there are interested parties who want to acquire the firm.
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Posted In: US, Bankruptcy
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Voyager
Voyager Digital is a bankrupt cryptocurrency exchange company in the United States that was founded in 2018.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Alameda Research
Alameda Research was once a principal trading firm, operating as an arm of the failed crypto exchange, FTX.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.