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The Permit Granted
Voyager has been given permission by a US bankruptcy court to reimburse its clients for hundreds of millions of dollars.
Shortly before markets closed, the share price of Voyager increased by more than 41% on the day. The Southern District of New York US Bankruptcy Court has authorized insolvent crypto lender Voyager Digital to refund $270 million to its clients, lifting the stock price of the troubled company for the day.
Judge Michael Wiles, who is in charge of Voyager’s bankruptcy proceedings, reportedly stated on Thursday that the company has given an adequate foundation in its bid to make its clients whole. Customers will have access to the custodial account at Metropolitan Commercial Bank, where it’s thought that the lender is holding more than $350 million, according to the article.
The share price of publicly traded Voyager, which is quoted on the Toronto Stock Exchange, has dropped more than 48 percent from $0.27 to $0.14 since it filed for bankruptcy on July 6. Although, according to exchange statistics, the company’s shares exploded on Thursday following Judge Wiles’ decision, surging more than 41% on the day from $0.085 to $0.14 before the closing bell.
ALSO READ – https://www.thecoinrepublic.com/2022/07/13/voyager-digital-upto-refund-usd-deposits-for-now-but-not-crypto/
The Statement by Stephen Ehrlich
Following the halting of account withdrawals last month out of concern that clients would simultaneously request their cash be moved off the platform, the lender soon filed for chapter 11 bankruptcy. The CEO of Voyager, Stephen Ehrlich, stated in a statement at the time that “the chapter 11 procedure provides an efficient and equitable means to maximise recovery.” The lender has also come under fire from the US insurance watchdogs, the FDIC and the Federal Reserve Board, who claim that the lender misrepresented the FDIC insurance status of its bank accounts.
On July 22, cryptocurrency exchange FTX and West Realm Shires together proposed to give early-access liquidity to Voyager clients by purchasing the company’s remaining digital assets and debts. Customers were given the opportunity to sign up for an account on FTX’s platform, giving them access to some of their frozen cash. Later, Voyager rejected bids by the businesses of FTX CEO Sam Bankman-Fried to buy the assets of the cryptocurrency lender, branding it as a “lowball proposal disguised as a white knight rescue.”
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
