Voyager to return $270M in customer funds, says it received ‘better’ offers than FTX

Voyager to return $270M in customer funds, says it received 'better' offers than FTX

Embattled crypto lender Voyager Digital Holdings claims to have received a number of “higher and better” buyout offers than those offered by AlamedaFTX in July, contrary to the investment firm’s ongoing public statements.

The company has also just been authorized to return $270 million in customer funds held at the Metropolitan Commercial Bank (MCB) by the judge presiding over its bankruptcy proceedings in New York.

During a presentation at the second day of hearing on Thursday, Voyager said he had received word from as many as 88 interested parties keen to bail out the company from its financial difficulties, adding that it is in “active discussions” with more than 20 potentially interested parties.

One of the most hyped deals came from Alameda and FTX in July.

Alameda had offered to buy all the assets of Voyager and outstanding loans, except for the delinquent loan to Three Arrows Capital, then liquidate the assets and distribute the funds in USD through the FTX US exchange.

This was rejected by Voyager on July 25 on the grounds that it did not “maximize value” for its customers.

The company also noted that it has already received offers through the go-to-market process that are “higher and better than AlamedaFTX’s proposal”, contrary to AlamediaFTX’s “inaccurate” public statements.

Source: Presentation of the second day of Voyager Digital

Voyager said it also separately sent AlamedaFTX a cease and desist letter regarding its “inaccurate” public statements, confirming that AlamedaFTX had no “advantage” over other bidders.

$270 million in client funds returned

News of other interested bidders comes at the same time US Bankruptcy Court Judge Michael Wiles gave Voyager the green light to return some of its customers’ cash deposits.

According to a Thursday report from The Wall Street Journal, Wiles said Voyager had provided a “sufficient basis” for its claim that customers should have access to the custody account held at the Metropolitan Commercial Bank, which is believed to hold $270 million in cash.

Voyager had funds hidden in the bank account when he filed for bankruptcy the 5 of July. These funds were frozen at the start of the bankruptcy proceedings.

Related: Deposits with non-bank entities, including crypto companies, are not insured – FDIC

Stephen Ehrlich, CEO of Voyager Digital mentioned in July that it intended to return MCB client funds as soon as a “reconciliation and fraud prevention process” was completed, and the company would have requested that MCB funds be released on July 15.

Voyager’s debt stands at just $10 billion from around 100,000 creditors, but is not the only crypto brokerage, loan or investment company to have fallen on hard times. for itself and its users. Celsius, Three Arrows Capital, BlockFi and others have also been drawn into the ongoing saga.