Crypto lender Voyager Digital gets approval to return $270 million to customers – WSJ

(Reuters) – The U.S. Chapter Courtroom in New York has given crypto agency Voyager Digital Holdings Inc the approval to return $270 million in buyer money, the Wall Avenue Journal reported on Thursday.

Choose Michael Wiles, who’s overseeing Voyager’s chapter, dominated that the corporate supplied “enough foundation” to help its rivalry that prospects needs to be allowed entry to the custodial account held at Metropolitan Business Financial institution, the Journal mentioned. (https://on.wsj.com/3SpvW09)

The corporate was not instantly accessible for remark.

Voyager, certainly one of a number of companies to battle within the wake of broad crypto market turmoil, filed for Chapter 11 final month.

In its chapter submitting, Voyager estimated that it had greater than 100,000 collectors and between $1 billion and $10 billion in belongings, in addition to liabilities of the identical worth.

Final week, the corporate was ordered by the Federal Reserve and the Federal Deposit Insurance coverage Corp (FDIC) to stop and desist from making “false and deceptive” claims that its prospects’ funds have been protected by the federal government.

The regulators mentioned that the corporate simply had a deposit account at Metropolitan Business Financial institution, and prospects investing through its platform had no FDIC insurance coverage.

Crypto lenders like Voyager boomed throughout the COVID-19 pandemic, drawing depositors with excessive rates of interest and easy accessibility to loans hardly ever provided by conventional banks. Nevertheless, the current stoop in crypto markets – sparked by the downfall of two main tokens in Could – has damage lenders.

(Reporting by Akanksha Khushi in Bengaluru; Enhancing by Maju Samuel)