Voyager Outlines How It Plans to Reimburse its Users
- Voyager paused deposits and withdrawals after Three Arrows Capital, 3AC, failed to meet its loan obligation.
Over the last few weeks, crypto lender, Voyager has found itself in the spotlight following the recent crisis in the crypto space. Days after filing for chapter 11 bankruptcy, the embattled firm has been working out ways to reimburse its users and outlined a recovery plan. However, Voyager has not clarified if its recovery plan would totally reimburse affected clients.
The platform released a blog post on Monday, noting that it had around $1.3 billion in affected users’ funds, including the $650 million claims against 3AC. Voyager had previously issued a default note to 3AC after it failed to fulfill its loan obligation. 3AC reportedly defaulted to pay back 15,250 Bitcoin (BTC) and 350 million USD Coin (USDC) in loan to Voyager.
Voyager’s recovery plan details that customers could get a blend of cash from its case with 3AC, tokens, and cryptocurrencies. This plan is however subject to approval from a court. Voyager further claimed that along with cryptocurrency assets, it was holding cash in an individual FDIC-insured account at the Metropolitan Commercial Bank of New York that is equivalent to the USD in customer accounts. Voyager also stated that it was trying to restore access to USD deposits, pending a process of validation and fraud detection.
In a series of tweets it shared, Voyager wrote,
We understand how critical it is to get access to the value in your account and we are working through this process as quickly as possible to do just that. Customer cash belongs to you and will go back to you, subject to a reconciliation and fraud prevention process. All customer cash is held in a customer account at Metropolitan Commercial Bank and is equal to the amount of cash in Voyager accounts.
Speaking of its recovery plan, the crypto loan company said that the precise figures would depend on how the restructuring process and the recovery of 3AC assets turn out. Voyager said it put together a restructuring plan that would protect its customer’s assets and give it the best chance to maximize value. However, the firm added that the proposal is subject to amendment, negotiation with customers, and eventually a vote.
3AC’s collapse was the beginning of Voyager’s crisis last month. Since then, the lending firm has seen its value drop by a significant percentage. Voyager would be hoping that its recovery strategy goes according to plan. More details will emerge in the coming days.