Voyager Digital Approval To Return $270 Million To Customers
Voyager Digital Holdings Inc is a crypto loan company that offers high interest rates and easy access to loans to companies that find it difficult to get loans from conventional banks. This company is one of the ones facing bankruptcy as a result of the crypto market downturn.
U.S. The Bankruptcy Court in New York has given approval to the company to return $270 million in cash to customers.
Judge Michael Wiles, who oversaw Voyager's bankruptcy, ruled that the company provided sufficient grounds to allow customers to access custodial accounts at Metropolitan Commercial Bank.
In a previously written Chapter 11 bankruptcy filing, Voyager estimated it had more than 100,000 creditors worth an average of between $1 billion and $10 billion in assets and liabilities.
In addition, the company has ordered the Federal Reserve (Fed) and the Federal Deposit Insurance Corp (FDIC) to stop making any false statements that customer funds are protected by the government.
Furthermore, the regulator also said Voyager Digital had established deposit accounts at Metropolitan Commercial Bank, and customers going through the platform did not have Federal Deposit Insurance Corporation (FDIC) protection.
