Voyager Digital asks the court to allow withdrawal requests
The combating crypto-brokerage firm Voyager Digital recently applied for permission to process user withdrawals from the Federal Bankruptcy Court.
According to a recent submission, Voyager is requesting permission from the court to approve users’ withdrawal requests. The amount is in excess of $ 350 million. The funds are in a For Benefit of Customers (FBO) account with the New York Metropolitan Commercial Bank.
The company follows this line to reduce customer concern and restore investor confidence. According to the company, “failure to respect customer withdrawals could further damage customer morale.”
Remember that on July 4, Voyager Digital stopped withdrawing on its platform due to the market downturn. The company said at the time that the move would give it time to explore possible options to scale the difficulties caused by the current bearish rune.
Shortly afterwards, the troubled company sought Chapter 11 bankruptcy protection to preserve its assets and maximize customer value.
The hard-working company says it has $ 1.3 billion in cryptocurrencies on its platform and also has over $ 350 in an FBO account with Metropolitan Commercial Bank.
In addition to this, Voyager says they are entitled to over $ 650 million with Singaporean-based Three Arrows Capital.
Along with its request for permission to honor withdrawals, Voyager also requests approval to continue with its other financial services. These include liquidation of user accounts with a negative balance and also liquidation of cash with third-party exchanges.
Furthermore, it wants to carry out ordinary course reconciliation on the user accounts and also continue its crypto-deposit services.
With customers’ funds still trapped, the crypto community is waiting for the court’s decision in the case. The court has ruled on 4 August 2022 at 11.00 ET for the hearing.
The long-term bearish market continues to negatively affect players’ fortunes in the nascent industry.
Collapsed crypto-lender Three Arrows Capital also recently filed a Chapter 15 bankruptcy in the United States after a court in the British Virgin Islands ruled that the company should be liquidated. Other crypto borrowers such as Celsius, Vauld and Babel Finance have also stopped withdrawals on their platforms.
Several companies, including Coinbase, The twinsand BlockFi has reduced the number of employees to remain operational.
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