After weeks of declaring bankruptcy and suspending withdrawals, Voyager Digital has decided to allow its users to withdraw their funds. The company banned funds withdrawal for the broker company user and clients on the 1st of July 2022. Voyager Digital CEO Stephen Ehrlich stated the best decision the company could take to prevent further liquidation and bankruptcy.
Voyager Digital Set To Place Withdrawal On 11th of August
After weeks of filing for court approval to allow users to withdraw their funds, the request has finally been approved with conditions attached. The withdrawal platform will be made available on the 11th of August.
The court allowed that $270 million in cash deposits be disbursed to clients and users ready to withdraw their funds. The maximum amount a single user can withdraw is $100,000 within 24 hours.
The announcement was made known by the Voyager media team via a statement on the company’s official website.
An excerpt for the blog post states, “We are happy to announce the opening of withdrawal platform for Voyager users and clients. Cash withdrawals only will be available on the 11th of August for customers who want to withdraw their funds. Only users with United States dollars in their Voyagers account will be allowed to make a cash withdrawal.”
According to the blog post, once the clients place their withdrawal, it will be processed. The withdrawal requests will be processed manually according to the conditions stated.
Once the withdrawal is approved, an email with the details will be sent for the customers to access the withdrawal on the applications. The cash will be transferred to individual banks.
Voyager CEO, $30M Profits Possible Cause For Bankruptcy
After the announcement of the company’s bankruptcy, there were different speculations behind the act. However, CNBC revealed that Voyager Chief Executive Officer Stephen Ehrlich sold the company stocks and assets in February and March 2021.
After selling the company stocks and assets, a total of $30 million was realized from the 2 million stocks sold at 11 different times. There is speculation that the sale of the stocks and assets is part of the bankruptcy.
The bearish period and long volatility in the crypto market caused doom to many companies. Voyager was alleged to have accumulated millions of debt during the crypto contagion season.
Voyager owed crypto exchange platform, FTX affiliated company, Almeda Research $75 million, Google about $960k, and other companies. However, after three weeks of suspending withdrawal trading and deposition, the company filed to court to allow withdrawals of funds by the platform’s users.
A few days later, crypto-exchange platform FTX proposed a joint withdrawal deal with Voyager Digital. The proposal was a full acquisition of the bankrupt crypto broker company.
FTX gave a 15-day ultimatum to Voyager Digital to reply to the proposal by FTX. However, Voyager Digital CEO Stephen Ehrlich failed to comment or react to the proposition nor clear the profit acquisition claims.