News of Voyager filing for chapter 11 bankruptcy came as a shock to the crypto world. Voyager suffered heavy losses from its association with the crypto hedge fund Three Arrows Capital, which went into bankruptcy last week after defaulting on several loans.
According to the company, a company rare organization is in full swing and users will receive their money back but not in a single payment and perhaps not in the form it was deposited.
Voyager comes up with this official web update and this comes from investvoyager.com talking about an update on the customer assets saying that they know that many people have questions they’re working very hard through the process as quickly as they can to give answers and appropriate answers as they probably want to wait until they have you know official confirmation or some idea that the court is going to approve this organization plan so that way they can come up with an update for their investors.
So how does the organizational restructuring process impact the cash that you have in the account?
They are working to restore access to those USDdeposits now this is not having the crypto assets held on the exchange this is if you just held a USD deposit if you just had cash that was sitting on a voyager this belongs to the customers here they say it will go back to those same customers but they are subject to a reconciliation conciliation and a fraud prevention process and regarding if your USDis safe and if you will get all of it back customer USD is held in a special type of bank account it’s called the FBO account for benefit of customers and this is because voyager bank or voyager digital was in association with this metropolitan commercial bank of new york mcb will call for short here so the amount of USD held in that FBO account is equal to the amount of USD in those customer accounts.
USD deposits will be available after the reconciliation and fraud prevention process so those USDdeposits will be returned to people that had money on their USD and your voyager cash account is held at that mcb mcb bank which is fid insured so that means you are covered if the mcb bank failures up to a maximum of course with the FDIC has for the 250 000 per customer now FDIC insurance does not protect against the failure of voyager that’s the thing but to be clear the voyager does not hold the customer cash that cash is held at mcb so yes it is FDIC assured technically because the cash that you do hold that you are holding on voyager is technically being held in those FBO accounts by mcb you’re just seeing on the voyager exchange so yes it looks like everybody’s going to be getting those USD deposits back as far as this goes.
Now the one million dollars question is what will happen to the crypto in my account
Voyager approximately has 1.3 billion of crypto assets on the platform plus claims against three euros capital of more than 650 million dollars so it fluctuates due to the exchange rate between these different cryptocurrencies under the proposed reorganization plan now this is where this gets important that was presented on Friday so this is new and it is subject to change and this does require court approval remember this is subject to a change and requires court approval so things could change this is not finalized but however this is the direction that they are going customers will receive a combination of the following with the ability to select the proportion of crypto and common equity they receive certain to maximal threshold so they’re going to be able to select the proportion of crypto now think about this proportion and these are the different ways so a pro rata share of crypto a pro rata share a proceeds from the three ac recovery and what pro rata means this basically means a fair share or a proportionate fair share of the whole fund or whatever the whole piece is there’s going to be a fair share in proportion to whatever that whole piece is so we don’t know what that amount is but it looks like everybody will get a fair share in the way of crypto or in the way of proceeds from the 3ac recovery depending on how that goes that they are going to be able to get money from that pro rata share of common shares in the newly organized company.
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