Crypto lenders will be permitted to return part of the Metropolitan Commercial Bank’s customer funds that have been frozen.

Voyager Digital Holdings, a crypto lender in trouble, claims it has received several “higher and more favorable” buyout offers than AlamedaFTX’s offer back in July. This is contrary to the firm’s public statements.

Judge in New York who is overseeing the bankruptcy proceedings has cleared the company to return $270 Million in customer funds at the Metropolitan Commercial Bank (MCB).

Voyager presented a second day hearing presentation on Thursday. Voyager said that it had heard word about as many as 88 potential interested parties who are keen to rescue the company from its financial troubles. Voyager also stated that it is currently in “active conversations” with more than 20 potential parties.

Alameda in July was the site of one of the most prominent bids.

Alameda had suggested to purchase all Voyager assets, outstanding loans and the defaulted loan to Three Arrows Capital. Then liquidate the assets to distribute USD funds through the FTX USA exchange.

Voyager rejected this on July 25, claiming that it wasn’t “value-maximizing”.

The company noted that it had received bids via the marketing process that were “higher than AlamedaFTX’s proposal,” contrary alleged “inaccurate” public statements by AlamediaFTX.

Voyager claimed that it had also sent AlamedaFTX an independent cease and desist letter concerning its “inaccurate public statements”, confirming that AlamedaFTX doesn’t have a “leg up” on other bidders.

Voyager receives news about potential bidders at the same moment that Judge Michael Wiles of the U.S. Bankruptcy Court has given the green light for Voyager to return some cash deposits from its customers.

According to a Wall Street Journal report, Wiles claimed that Voyager had provided sufficient basis for its claim that customers should have access to the custodial account at the Metropolitan Commercial Bank. This account is believed to contain $270 million cash.

Voyager had funds in its bank account when it filed bankruptcy July 5. These funds were frozen at the time bankruptcy proceedings began.

Stephen Ehrlich , CEO of Voyager Digital, mentioned in July he would return customer funds to MCB once a “reconciliation process and fraud prevention process” is completed. The firm reportedly requested that the funds in MCB be released on July 15.

Voyager has a debt of $10 billion, which is less than 100,000 creditors. However, Voyager is not the only crypto brokerage, lender, or investment firm to experience financial difficulties. In the ongoing drama, Celsius, Three Arrows Capital and BlockFi were also swept up.


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Angie Byrd