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.
Aug 5, 2022 at 5:03 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/HR4OHXHZ35G6RKN3NQZMOZUSXQ.jpg)
Voyager Digital CEO Steve Ehrlich gives a thumbs-up at Bitcoin Miami in April of 2022. (Danny Nelson/CoinDesk)
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."
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Danny is CoinDesk's Managing Editor for Data & Tokens. He owns BTC, ETH and SOL.
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