Voyager Receives Better Offer Than FTX, Will Return $270M to Customers

Troubled cryptocurrency lender Voyager Digital Holdings said it has received a number of “higher and better” bids than AlamedaFTX offered in July, contrary to the investment firm’s ongoing public statements.

The company also just received approval to return $270 million in client funds held by Metropolitan Bank of Commerce (MCB) in New York, where a judge presides over its bankruptcy proceedings.

During the second day of hearings on Aug. 4, Voyager said it had received Sources from as many as 88 stakeholders keen to help the company out of financial distress added that it was in “active discussions” with more than 20 potential stakeholders.

One of the most high-profile bids came from Alameda Ventures and FTX in July.

Alameda had proposed to purchase all of Voyager’s assets and outstanding loans, except for the default loan to Three Arrows Capital, and then liquidate the assets and distribute the funds in U.S. dollars through the FTX US exchange.

This was rejected by Voyager on July 25 on the grounds that it did not “maximize value” for customers.

The company also noted that it had received “higher and better” bids than AlamedaFTX’s proposal through the marketing process, contrary to what AlamediaFTX called “inaccurate” public statements.

Source: Voyager Digital Day Two Demo

Voyager said it also sent AlamedaFTX a separate cease-and-desist letter about its “inaccurate” public statements, confirming that AlamedaFTX had no “advantage” over other bidders.

$270 million in client funds returned

Meanwhile, news of other interested bidders comes that U.S. Bankruptcy Court Judge Michael Wiles has given Voyager full agreement to refund some of its customers’ cash deposits.

According to a Wall Street Journal report on August 4, Judge Wiles said the Voyager if It claims that customers should have access to “sufficient grounds” in an escrow account held at Metropolitan Commercial Bank (MCB), which is understood to hold $270 million in cash.

Voyager had the funds in an account with the bank when it filed for bankruptcy on July 5. The funds were frozen at the start of bankruptcy proceedings.

related: Deposits of non-bank entities, including cryptocurrency companies, are not insured – FDIC

Stephen Ehrlich, CEO, Voyager Digital mention In July, he intends to return client funds from MCB as soon as “reconciliation and fraud prevention procedures” are completed, the company said. it is said The MCB’s funds are requested to be released on July 15th.

Voyager’s total debt is no more than $10 billion from roughly 100,000 creditors, but it’s not the only cryptocurrency brokerage, lender or investment firm struggling for itself and its users. Celsius, Three Arrows Capital, BlockFi and others have also been drawn into the ongoing saga.