Voyager Requests Bankruptcy Court to Respect Withdrawals
Table of contents
As per a statement released by Voyager Digital on July 6, the company has roughly $1.3 billion in cryptocurrency assets on the platform and more than $350Voyager Digital million in a For Benefit of Customers (FBO) account at Metropolitan Commercial Bank. The business added that it has lawsuits against Three Arrows Capital for more than $650 million.
The company's July 14 petition with the US Bankruptcy Court for the Southern District of New York stated that the debtors, in their business judgment, have determined that "refusal to honor withdrawals any longer" could materially affect "customer morale" during these Chapter 11 cases.
"Restoring withdrawal access will allay consumer concerns about regaining access to their money held in the [Metropolitan Commercial Bank] accounts and the platform's integrity."
Voyager Requests For Conducting Financial Operation
Voyager Digital also asks for permission to conduct more financial operations in its court filing. These include "providing related relief," "sweeping funds" from third-party exchanges, executing "ordinary course reconciliation" of the client accounts, continuing bitcoin staking, and liquidating cryptocurrency from customer accounts with negative balances. There will be a hearing at 11:00 a.m. Eastern Time on August 4. On July 5, Voyager submitted a Chapter 11 bankruptcy petition.