In the near future, Voyager Digital Holdings, a cryptocurrency lending company, will resume withdrawals. Due to a streak of poor market performance and a significant loss, the cryptocurrency lending company suspended withdrawals and other services last month.
After the lending platform returned $270 million to its customers, a New York court recently released it.
Withdrawal from Voyager’s System Begins Once More
After a brief hiatus, the business has announced that their withdrawal services would resume on August 11. This is the company’s first step in returning the $270 million in customer assets that were cleared by the bankruptcy lawyer.
After receiving bankruptcy claims on the first of last month, Voyager Digital temporarily halted withdrawals. In addition, it was disclosed that the company had lost a significant amount of money because of the demise of Three Arrows Capital (3AC).
To prevent further withdrawals, the corporation transferred the assets to the care of New York’s Metropolitan Commercial Bank. After recent court orders, the lending company’s customers were finally able to access their money.
In a recent policy change, Voyager Digital has authorized the use of its mobile app to execute withdrawal requests from its customers, up to a daily maximum of $100,000.
Voyager further stated that it will expedite the withdrawal procedure and respond to the request without delay. Both the customer’s transaction history and their account statement will be examined by hand. The time it takes to process a withdrawal request might also be affected by the clients’ preferred withdrawal method and the bank that they use.
How Voyager Went Broke
The cryptocurrency lending company ran into trouble in June, when it announced that it had borrowed $500 million. The loan in question was taken out with Alameda Research, a division of FTX owned by Sam Bankman-Fried. Voyager has substantial exposure to the 3AC Crypto Hedge Fund Product from Three Arrows Capital prior to the loan agreement.
To make matters worse, 3AC had already defaulted on a massive $680 million debt owed to Vogayer. The breakdown of the Terra LUNA network also had an effect on Three Arrows Capital. That’s why a judge in the British Virgin Islands gave 3AC the liquidation order.
Upon recognizing it would be unable to repay the Voyager loan, the company filed for Chapter 11 bankruptcy in New York on July 5.
A restructuring, the hedge fund manager said when the accusations were filed. Users will be able to access their accounts again once services have been restored, according to the new operating approach.
Voyager turned down a takeover offer from FTX in July. Voyager said that the arrangement was bad for its clients, but it is still considering a sale.
Voyager is in a precarious position after its bankruptcy and is struggling to maintain profitability in the current market climate.
The corporation seeks to reorganize its operations now that it has been released from any imminent bankruptcy. The court has also approved the sale of the business, with the deadline for offers set for August 26 or earlier.