Voyager Digital requests that the bankruptcy court honour withdrawal requests

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Last Updated on July 16, 2022 by Bitfinsider

Voyager Digital, a struggling cryptocurrency broker, has asked the federal bankruptcy court to honor its clients’ withdrawal requests.

According to the company’s filings, Metropolitan Commercial Bank currently holds customer withdrawals totaling more than $350 million.

Voyager Digital stated that it has approximately $1.3 billion in cryptocurrencies on its platform. It did, however, have over $350 million in a For Benefit of Customers (FBO) account at Metropolitan Commercial Bank.

The cryptocurrency broker also stated that it has claims against Three Arrows Capital totaling more than $650 million.

According to Voyager Digital’s July 14 filing with the United States Bankruptcy Court for the Southern District of New York,

“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. 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 cryptocurrency broker requested permission from the bankruptcy court to conduct other financial transactions in its court filing.

Some of these actions include liquidating assets from negative balance customer accounts, “sweeping cash” held in third-party platforms and exchanges, conducting “ordinary course reconciliation” of the customer accounts, continuing cryptocurrency staking, and “granting related relief.”

A hearing has been scheduled for August 4 at 11:00 a.m. Eastern Time.

Prior to its bankruptcy, Voyager Digital was one of the leading cryptocurrency brokerage platforms. The bear market has had an impact on the performance of many cryptocurrency companies, including Celsius and Babel Finance.

The total cryptocurrency market cap is now less than $1 trillion, having fallen from an all-time high of $3 trillion in November 2021.


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Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.


Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

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