Voyager has been given permission by the bankruptcy court overseeing its Chapter 11 case to repay up to $270 million to clients.
Judge Michael Wiles, who is overseeing Voyager's case in the US Bankruptcy Court in New York, has approved Voyager's release of customer funds stored in a custodial account at Metropolitan Commercial Bank (MCB). According to a story in The Wall Street Journal, that amount is currently $270 million.
After stopping withdrawals, Voyager started Chapter 11 bankruptcy procedures at the beginning of July. The lending company attributed the collapse to a rapid deterioration in market conditions.
A company can carry on with business as usual while restructuring to pay creditors under Chapter 11 bankruptcy protection.
Since that time, Voyager has made an effort to fulfill client withdrawals for money held by Metropolitan Commercial Bank, which serves as Voyager's cash custodian.
Customers pay MCB in cash, which gives Voyager access to the money. The cash in the custody account may be given to clients by Voyager and MCB.
According to court records, there was around $350 million in the account at the time of the initial application. When Voyager filed for bankruptcy, there was around $270 million in the account, MCB informed the Journal.
Even though MCB is authorized to return the money to customers, the court has not yet ruled what will happen to the more than $1 billion in crypto assets on Voyager's platform.