A custodial account held at Metropolitan Commercial Bank (MCB) contains at least $270 million in cash that the company disclosed when it filed for bankruptcy. The firm has now been green-lighted to return these funds to its clients, settling one of the more significant issues it has faced, according to the WSJ.
Voyager Digital suspended withdrawals in early July due to bad debts that Three Arrows Capital (3AC) accrued. The firm filed for Chapter 11 bankruptcy on July 5, stating at the time that it had $350 million in cash held in the FBO (For Benefit Of) account for customers at the MCB. The firm requested the release of cash held in the bank but stated that the estimated $1.3 billion in crypto assets on the platform belonged to the bankruptcy estate to be shared by all creditors.#togrp7