Voyager to return $270M in client funds, says it received ‘better’ offers than FTX

Embattled crypto lender Voyager Digital Holdings says it has received a number of “higher and better” purchase offers than the one offered by AlamedaFTX in July, contrary to the investment firm’s continued public statements.

The company was also authorized to return $270 million in customer funds held at the Metropolitan Commercial Bank (MCB) by the judge presiding over its New York bankruptcy proceeding.

In a hearing presentation on the second day on Thursday, Voyager stated that it heard from as many as 88 interested parties eager to bail the company out of its financial troubles, adding that it is in “active discussions” with more than 20 potentially interested parties.

One of the most prominent deals came from Alameda and FTX in July.

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

This was rejected by Voyager on July 25 on the grounds that it was not “maximizing 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 alleged “inaccurate” public statements by AlamediaFTX.

Source: Voyager Digital Day 2 Presentation

Voyager stated that it also separately sent AlamedaFTX a cease and desist letter regarding its “inaccurate” public statements, confirming that AlamedaFTX does not have an “edge” over other bidders.

$270 million in returned customer funds

The news about other interested bidders comes at the same time that US Bankruptcy Court Judge Michael Wiles has given Voyager the go-ahead to return a portion of its clients’ cash deposits.

According to a Thursday report from the Wall Street Journal, Wiles stated that Voyager had provided “sufficient basis” for his claim that customers should have access to the escrow account held at Metropolitan Commercial Bank, which is believed to hold $270. millions in money.

Voyager had hidden funds in the bank account when it filed for bankruptcy on July 5. Those funds were frozen when bankruptcy proceedings began.

Related: Deposits with non-banks, including crypto companies, are not insured: FDIC

Stephen Ehrlich, CEO of Voyager Digital mentioned in July that it intended to return MCB’s client funds as soon as a “fraud prevention and reconciliation process” was completed, and the firm requested that the funds be released into the MCB on July 15.

Voyager’s debt amounts to no more than $10 billion from roughly 100,000 creditors, but it’s not the only cryptocurrency brokerage, lender, or investment firm to have fallen on hard times for itself and its users. Celsius, Three Arrows Capital, BlockFi and others have also been drawn into the ongoing saga.