pull down to refresh

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.
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.
reply