Crypto Lender Voyager Digital to Reopen Cash Withdrawals Next Week
The company, which is undergoing bankruptcy proceedings, received court approval for the $270 million plan on Thursday.
Crypto-lender Voyager Digital said Friday it plans to "restore access" to cash deposits on Aug. 11, the company's first step in returning up to $270 million in fiat currency to its customers.
The plan comes after Voyager, which is going through bankruptcy proceedings, gained court approval Thursday to honor customers' dollar withdrawal requests from Metropolitan Commercial Bank, where Voyager had a deposit account. In a blog post, Voyager said it could take 5 to 10 days to process return requests.
Voyager, which is helmed by CEO Steve Ehrlich, filed in July for bankruptcy protection after suffering massive losses stemming from the implosion of crypto hedge-fund Three Arrows Capital and the broader crypto-market downturn. Its customers had lent it billions of dollars in crypto assets. Those tokens remained locked up for now.
In the blog post, Voyager said it is "pursuing a standalone restructuring process" in an effort to "maximize the value of crypto on the platform."
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.