Summary:
- Voyager Digital has updated on the status of its customer’s USD and crypto.
- The crypto lending platform emphasizes that customers’ USD deposits are safe.
- Voyager states it has approximately $1.3 billion worth of crypto assets and $650 million in claims against Three Arrows Capital.
- The team has proposed a reorganization plan where its customers will receive their pro-rata share of the crypto, proceeds from 3AC recovery, common shares in the newly reorganized company, and shares of existing Voyager tokens.
The team at Voyager Digital has provided an update on the status of customers’ USD and crypto held at the lending platform.
All USD Deposits Belonging to Customers Will Go Back to the Same Customers.
According to the team at Voyager, all the USD deposits held on the platform belonging to its customers will be returned once reconciliation and fraud prevention is carried out.
The team also explains that all its customers’ USD is held ‘in a special type of bank account called a For Benefit of Customers (“FBO”) account at Metropolitan Commercial Bank of New York (“MCB”).’ In addition, the USD held in the FBO account is equal to the amount of USD in its customers’ accounts.
The USD is FDIC Insured for Up to $250k Per customer.
Furthermore, all the USD in customers’ cash accounts held at MCB is FDIC insured. Consequently, each customer is covered up to a maximum of $250k.
Voyager Proposes a Pro-Rata Distribution of Crypto, 3AC Proceeds, and Shares.
The team at Voyager also declared that it currently holds roughly $1.3 billion worth of crypto plus $650 million in claims against Three Arrows Capital. As a result, it proposes a distribution of assets to its customers through a combination of the following, with each customer having ‘the ability to select the proportion of crypto and common equity they receive, subject to certain maximum thresholds.’:
- Pro-rata share of crypto
- Pro-rata share of proceeds from the 3AC recovery
- Pro-rata share of common shares in the newly reorganized company
- Pro-rata share of existing Voyager tokens
USD and Crypto Distribution Plan is Subject to Change.
In the concluding section of the update, the Voyager team stresses that the proposed distribution of assets to its customers is subject to change. They state:
The plan is subject to change, negotiation with customers, and ultimately a vote.
In Voyager’s case, customers are the primary creditors and will have an opportunity to vote on the proposed Plan of Reorganization. We put together a restructuring plan that would preserve customer assets and provide the best opportunity to maximize value.
In addition, the Company is pursuing various strategic alternatives to evaluate the value of the standalone company compared with a third-party investment or sale.
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