Embattled cryptocurrency brokerage company, Vayager Digital, has been given the green light to refund customer funds. A bankruptcy court in New York ruled on 4th August 2022, that Voyager Digital had provided sufficient basis to back its claim that customers should be reimbursed with some of their funds.

The company disclosed that they had a custodial account held at Metropolitan Commercial Bank (MCB) which contained at least $270 million in cash when the company filed for bankruptcy. The firm has now received the green light to to return these finds to it’s clients.

In July, Voyager Digital had suspended withdrawals due to serious debts that they were owes by Three Arrows Capital (3AC). The firm filed for Chapter 11 bankruptcy stating that it had $350 million in cash at that time. This money was held in an FBO (For Benefit Of) account for customers at the Metropolitan Commercial Bank.

Like many other crypto firms, Voyager’s customers rushed to withdraw their funds because of the failing crypto market. The firm then requested that the cash held in the bank be released but stated that the estimated $1.3. million in cryptocurrency assets on the platform will go to the bankruptcy estate and will be shared among its creditors.

Late in July, SBF lashed out at the firm for not reimbursing their customers when Voyager still had 75% of their assets. Weeks later, the Federal Reserve and Federal Deposit Insurance Corporation (FDIC) accused Voyager of lying to its customers that it had FDIC insurance cover. This Week’s green light for the fund release will calm the waters and provide reprieve for their customers.

Voyager Digital aims to complete its sale by September and has already rejected purchase offers from crypto billionaire and FTX boss, Sam Bankman-Fried. Voyager will indeed have new owners before the end of the year which will bring an end to one of the most painful stories of this year’s market downturn.

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