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Voyager Cannot Guarantee Users Will Recover All of Their Crypto
Summary: Voyager confirmed they were granted the relief requested in their Chapter 11 bankruptcy filing but revealed that customers might not be able to fully recover their entire portfolio, according to a blog post. In an email and blog post released on Monday, Voyager updated the community on Voyager’s bankruptcy status, while also talking in length ...
Voyager confirmed they were granted the relief requested in their Chapter 11 bankruptcy filing but revealed that customers might not be able to fully recover their entire portfolio, according to a blog post.
In an email and blog post released on Monday, Voyager updated the community on Voyager’s bankruptcy status, while also talking in length about USD and crypto users have in the app.
USD
Users can either have USD on the crypto exchange by depositing it from their bank account onto the app without purchasing crypto yet, or from selling their crypto on the exchange and not depositing it into their bank accounts.
Voyager assured users that their cash is safe, as it is held in a special type of bank account through Metropolitan Commercial Bank (MCB) of New York called a For Benefit of Customers (FBO) account. Voyager claimed that the amount of USD held in the FBO account is equal to the amount of USD in customer accounts. However, in the event of a MCB failure, Voyager users would be covered up to a maximum of $250,000 per customer.
Crypto
Voyager told customers that it currently holds $1.3 billion of crypto assets on its platform, plus claims against Three Arrows Capital (3AC), a debt-laden hedge fund that recently filed for bankruptcy, in the form of roughly $650 million. In its proposed reorganization plan, Voyager stated customers would receive a combination of the following: 1) pro-rata share of crypto; 2) pro-rata share of proceeds from the 3AC recovery; 3) pro-rata share of common shares in the newly reorganized company and 4) pro-rata share of existing Voyager tokens.
Unfortunately for customers, Voyager cannot confirm how much in crypto they will receive, due to the ongoing 3AC claim. They also noted that this plan is subjected to change as it is pending court approval. Their next court hearing will take place on August 4, where they will seek more relief to further stabilize their operations and advance the restructuring.
Author: Tyler Irvin
Tags: bankruptcy,Three Arrows Capital,Voyager
Link: Voyager Cannot Guarantee Users Will Recover All of Their Crypto [Copy]
