September 27, 2022


Beleaguered cryptocurrency lender Voyager Digital Holdings says it has received several “higher and better” buyout offers than AlamedaFTX offered in July, contrary to the investment firm’s ongoing public statements.

The company has just been approved to return $270 million in customer funds it held at Metropolitan Commercial Bank (MCB) by the judge presiding over the bankruptcy proceedings in New York.

In a second-day listening presentation on August 4, Voyager stated that it did received of 88 interested parties keen to rescue the company from its financial woes, adding that it is in “active discussions” with more than 20 potential interested parties.

One of the highest bids came from Alameda Ventures and FTX in July.

Alameda had proposed to purchase all of Voyager’s assets and outstanding loans except the defaulted loan to Three Arrows Capital, then liquidate the assets and distribute funds in US dollars through the US FTX exchange.

This was rejected by Voyager on July 25 on the grounds that it did not “maximize value” for its customers.

The company also noted that it has already received offers through the marketing process that are “higher and better than AlamedaFTX’s proposal,” contrary to AlamediaFTX’s allegedly “inaccurate” public statements.

Source: Voyager Digital Second Day Presentation

Voyager said it also separately sent AlamedaFTX a cease and desist letter regarding its “inaccurate” public statements, confirming that AlamedaFTX does not have a “leg up” on other bidders.

$270 million in client funds returned

News of other interested bidders comes as U.S. Bankruptcy Court Judge Michael Wiles gave Voyager the all-clear to return a portion of their customers’ cash deposits.

According to an August 4 report by the Wall Street Journal, Judge Wiles stated that Voyager had provided an “adequate basis” for its claim that customers should have access to the custodial account held at Metropolitan Commercial Bank (MCB), which is understood to have $270 million in cash.

Voyager had funds stashed away in the bank account when it filed for bankruptcy on July 5. These funds were frozen when the bankruptcy process began.

Related: Deposits with non-bank entities, including crypto companies, are not insured — FDIC

Voyager Digital CEO Stephen Ehrlich mentioned in July that it intended to return customer funds from MCB once a “reconciliation and fraud prevention process” was completed and the company According to reports asked to release the funds to MCB on July 15.

Voyager’s debt amounts to no more than $10 billion from around 100,000 creditors, but it’s not the only such crypto brokerage, lender or investment company to have fallen on hard times for itself and its users. Celsius, Three Arrows Capital, BlockFi and others have also been swept up in the ongoing saga.