Troubled crypto lender Voyager Digital said it plans to “restore access” to cash deposits in USD this week. Here’s what the process might look like.
In a Friday blog post, Voyager said clients with cash in their accounts would be able to withdraw up to USD 100,000 in a 24-hour period starting as early as August 11.
The company said eligible customers would receive an email with more details before the withdrawal process begins. “We anticipate customers will receive their funds in about 5-10 business days after making their requests,” they added.
The move comes after a court approved Voyager’s proposal to return USD 270m worth of funds held for the benefit of the company’s customers at Metropolitan Commercial Bank, where Voyager had a deposit account.
As part of its next steps in the reorganization process, Voyager reiterated that it would consider a standalone restructuring process and a potential sale of the company.
“As part of our efforts to maximize the value of crypto on the platform, we are simultaneously pursuing a standalone restructuring process and a potential sale of the company,” the company said, adding that the court has already approved their bidding procedures that will govern the sale process.
As reported, the lender already received “multiple bids for its assets in excess of an earlier offer” from the crypto exchange FTX and linked trading firm Alameda Research.
Voyager filed for bankruptcy protection in July after suffering massive losses from the failure of crypto hedge-fund Three Arrows Capital (3AC) and the broader crypto meltdown.
In its bankruptcy filing, Voyager claimed it had over USD 110m of cash, more than USD 350m of cash held in the For Benefit of Customers account at Metropolitan Commercial Bank, approximately USD 1.3bn of cryptoassets on its platform, and claims against 3AC of more than USD 650m.