Crypto Company Voyager Asks Judge to Honor Withdrawals

by in Cryptocurrency News

Voyager withdrawals honor

Digital assets brokerage and lending services provider Voyager, which applied for Chapter 11 bankruptcy recently, asked the court to honor user withdrawals from the custodian bank. A report by The Wall Street Journal says the company's filings show that they asked for a judge's approval to fulfill withdrawal requests for $350M in cash held on behalf of its users at a New York-based bank.

Related: Three Arrows Capital Files for Bankruptcy, CEO Sells a Mansion

Earlier this month, Voyager announced pausing trading, withdrawals, deposits, and rewards. Then, on July 5, the company submitted a bankruptcy filing saying they aim to restructure the business and resume access to accounts.

In addition, Voyager announced holding cryptos worth $1.3 bln on the platform. The company has claims against the crypto investment firm 3AC and pursues legal remedies of more than $650 M.

Voyager also seeks verification to execute other financial operations like liquidating cryptocurrencies from customer addresses with negative balances, sweeping cash held in external platforms, implementing reconciliation, and continuing staking. The court hearing is expected to take place on August 4.