According to court room filings, lending platform Voyager Digital has asked for a bankruptcy judge’s permission to honor withdrawal requests for $350 million in money funds held on behalf of its clients at a custodian financial institution.
“The debtors have determined, in their business judgment, that failure by the debtors to honor withdrawals any longer could materially harm customer morale during these Chapter 11 cases,” said the platform in its filing.
Voyager Digital has previously revealed that it held more than $350 million in a ‘For Benefit of Customers’ (FBO) account at Metropolitan Commercial Bank.
“Reinstating access to withdrawals will alleviate customer concerns that access to their cash held in the [Metropolitan Commercial Bank] accounts, and the integrity of the platform, is restored.”
The platform also revealed that it holds about $1.3 billion worth of crypto assets on the platform, and said it has claims against Three Arrows Capital exceeding $650 million.
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Voyager, in the same court filings, also asked for authorization to carry out other financial actions such as liquidating crypto from customer accounts with negative balances, “sweep cash” held in third-party exchanges, conducting “ordinary course reconciliation” of the customer accounts, continuing crypto staking and “granting related relief.”
Voyager Digital filed for a Chapter 11 bankruptcy on June 6 due to the ongoing crypto crash.
