The U.S. Bankruptcy Court in New York has authorized cryptocurrency firm Voyager Digital Holdings to return $270 million in customer cash, The Wall Street Journal reported Thursday.
Judge Michael Wiles, who is overseeing Voyager’s bankruptcy, has found “substantial grounds” to support the company’s claim that customers should be allowed access to custodial accounts held with Metropolitan Commercial Bank. The Wall Street Journal said it had ruled that the company provided it.
The company was not immediately reached for comment.
Voyager is one of several companies struggling in the wake of the widespread crypto market turmoil, having filed for Chapter 11 last month.
At the time of filing for bankruptcy, Voyager estimates it has more than 100,000 creditors, $1 billion to $10 billion in assets, and a similar amount of liabilities.
Last week, the company was ordered by the Federal Reserve and Federal Deposit Insurance Corporation (FDIC) to stop making “false and misleading” claims that customer funds are protected by the government.
The regulator said the company only has a savings account with the Metropolitan Commercial Bank and its customers investing through its platform are not FDIC-insured.
Cryptocurrency lenders like Voyager have boomed during the COVID-19 pandemic, luring depositors with high interest rates and access to easy loans rarely offered by traditional banks. However, the recent crypto market slump triggered by the fall of two major tokens in May has taken a toll on lenders.
https://cyprus-mail.com/2022/08/06/crypto-lender-voyager-digital-gets-approval-to-return-270-million-to-customers/ Crypto Lender Voyager Digital Gets Approval To Return $270 Million To Customers