Voyager Digital has released an Update on the customer’s USD and Crypto locked on its platform as a part of its “restructuring process” after it filed for a Chapter 11 bankruptcy. In the new update, the platform clearly burst the hope of customers tied to their funds as Voyager hinted at its inability to repay its customers with the full amount.
The blog posted on July 11 states that Voyager Digital is working to restore USD deposits. Customers will get back their USD funds in their accounts under a reconciliation and fraud prevention process.
The company unveils that customer USD is deposited in the “special type” of bank account “For Benefit of Customers (FBO)” at Metropolitan Commercial Bank of New York.
Also, the USD held at MCB is FDIC insured, which allows the customer to cover their loss if the Bank fails. However, it has a higher limit of $250, 000 per Voyager Customer.
Once a reconciliation and fraud prevention process is completed, the USD deposit will be available.
Voyager Claimed that around $1.3 billion worth of crypto assets are held on its platform excluding its over $650 million claims against Three Arrow Capital (3AC).
While Voyager’s proposed reorganization plan seeks court approval, the platform unveils the possible ways to return crypto to its customers. As per the release, the customer will be able to select the proportion of crypto and common equity with certain maximum thresholds.
Customers will be able to claim their funds by selecting one of these four options:
- Pro-rata share of crypto
- Pro-rata share of proceeds from the 3AC recovery
- Pro-rata share of common shares in the newly reorganized Company; and
- Pro-rata share of existing Voyager tokens
Furthermore, the specific figure in the crypto that the customer will receive will be decided after the restructuring process and the recovery of 3AC assets.
