August 8, 2022

The embattled crypto lender Voyager Digital Holdings says it received a number of bids “higher and better” than those made by AlamedaFTX last July, contrary to the investment firm’s continued public statements.

The company has also just been cleared of returning $270 million in client funds held in the Metropolitan Commercial Bank (MCB) by the judge presiding over the New York bankruptcy proceedings.

In a presentation for the second day’s session on August 4, Voyager stated that it did so Receive Word from up to 88 interested parties eager to rescue the company from its financial troubles, adding that it is in “active discussions” with more than 20 potential interested parties.

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

Alameda has proposed buying all of Voyager’s assets and outstanding loans except for Three Arrows Capital’s non-performing loan, then liquidating the assets and distributing the money in US dollars through the US FTX exchange.

Voyager rejected this on July 25 on the grounds that it does not “increase value” for its customers.

The company also indicated that it had already received bids through the marketing process that were “higher and better than AlamedaFTX’s bid,” in contrast to alleged “inaccurate” public statements from AlamediaFTX.

Source: Voyager Digital Second Day Presentation

Voyager stated that it also separately sent AlamedaFTX a cease-and-desist letter regarding its “inaccurate” public statements, asserting that AlamedaFTX had no “support” over other bidders.

$270 million in customer funds returned

The news about other interested bidders comes at the same time that US Bankruptcy Court Judge Michael Wales gave Voyager full clarity to return a portion of its customers’ cash deposits.

According to an August 4 report from The Wall Street Journal, Judge Wales stated that Voyager has Submitted “Sufficient basis” for its claim that clients should have access to a custodian account held at the Metropolitan Commercial Bank (MCB), which is understood to contain $270 million in cash.

Voyager had money stashed in a bank account when he filed for bankruptcy on July 5. These funds were frozen when bankruptcy proceedings began.

Related: Deposits in non-bank entities, including crypto companies, are not insured – FDIC

Voyager Digital CEO, Stephen Ehrlich Referred In July, he intended to return clients’ funds from MCB once the “settlement and fraud prevention process” was completed, and the company obtained It said Application for funds in MCB released on 15 July.

Voyager has no more than $10 billion in debt from nearly 100,000 creditors, but it’s not the only cryptocurrency brokerage, lender, or investment firm that has gone through hard times for itself and its users. Celsius, Three Arrows Capital, BlockFi, and others have been engulfed in the ongoing saga.