WSJ: Voyager Digital Is Cleared to Return $270 Million to Customers \ stacker news ~bitcoin

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WSJ: Voyager Digital Is Cleared to Return $270 Million to Customers archive.ph/BLjUE

40 sats \ 7 comments \ @cryptocoin 5 Aug 2022 bitcoin

25 sats \ 3 replies \ @TheBTCManual 5 Aug 2022

Weren't these guys also acquired by FTX? At least their customers are able to get something back and hopefully some learn the lesson now to self custody while im sure most will go back to the casino of their choice

I wonder how celsius users are feeling now, if other sites are now scheduled to pay back and you're in bankruptcy court with Alex saying it ain't his fault

0 sats \ 2 replies \ @cryptocoin OP 5 Aug 2022

It's a bankruptcy case. So it isn't Voyager's call what happens from here. But from the article:

The company said it is aiming to wrap up a sale process in September. Billionaire Sam Bankman -Fried’s FTX Trading Ltd. in July made an offer to buy some of Voyager’s crypto assets and allow Voyager customers a chance to use the money to open accounts on the FTX platform.

Joshua Sussberg, Voyager’s lawyer, told the court on Thursday that FTX’s offer is the lowest among several proposals, and that it is in talks with FTX to get to a higher offer.

25 sats \ 1 reply \ @TheBTCManual 5 Aug 2022

Yeah that's the story I heard that FTX would allow voyager peeps to pull part of their deposit out if they moved over or something like that

If FTX is the lowest offer why not go with the highest? lol why ask FTX to outbid them, am I missing something here?

0 sats \ 0 replies \ @cryptocoin OP 5 Aug 2022

Certainly with a bankruptcy case, who knows what happens, but if they do let the assets get sold I suspect that means they go with the high bid, which would exclude FTX due to not having high bid, if that remains the case.

Mt. Gox 2014 bankruptcy has still not paid out to the creditors. These things don't get resolved overnight.

0 sats \ 0 replies \ @cryptocoin OP 5 Aug 2022

The link for this post is using an archive for the article on The WSJ's website. An archive has no paywall, no subscription requirement, and can be easier to read. The original article, on The WSJ's website is:

Voyager Digital Is Cleared to Return $270 Million to Customers https://www.wsj.com/articles/voyager-digital-to-return-270-million-to-customers-11659648633

0 sats \ 1 reply \ @cryptocoin OP 5 Aug 2022

Judge Michael Wiles of the U.S. Bankruptcy Court in New York, who is overseeing Voyager’s bankruptcy, ruled on Thursday that the company provided “sufficient basis” to support its contention that customers should be allowed access to the custodial account held at Metropolitan Commercial Bank. Voyager had about $270 million in the account when it filed for bankruptcy, the bank has said.

In recent weeks, Voyager has asked for the bankruptcy court’s permission to honor customer withdrawal requests for cash funds held in custody at New York-based Metropolitan Commercial Bank, but it said the roughly $1.3 billion in digital assets on Voyager’s platform belongs to the bankruptcy estate that will be shared by all creditors, with the distribution to be decided through the bankruptcy proceeding.

0 sats \ 0 replies \ @cryptocoin OP 5 Aug 2022

This $270M was in an "FBO" (For Benefit Of) account. Which means it was segregated from Voyager's money and was for the customer's USD balances with Voyager.

The $1.3B of digital assets is what will get divvied up among creditors (customers, vendors, etc.) minus lawyers fees ... and paid out pennies on the dollar years from now after the bankruptcy process is completed.