Voyager Digital Updates Customer Refund Process and Declares U.S. FDIC Coverage

Crypto broker Voyager Digital announced that it is working to restore access to customer deposits and will return funds to customers through a reconciliation and fraud prevention process. Regarding the customer refund process, the company said it currently has about $1.3 billion in crypto assets on its platform, plus a claim against Three Arrows Capital for more than $650 million, and that customers will be able to choose the percentage of cryptocurrency and common stock they receive, subject to certain maximum thresholds: pro-rata share of crypto; pro-rata share of proceeds from the Three Arrows Capital recovery; and pro-rata share of common shares in the newly reorganized company and existing Voyager tokens. It is said that the plan is subject to change and requires Court approval. With respect to FDIC coverage, Voyager has indicated that the dollars in its cash account are held by Metropolitan Commercial Bank (MCB) and that the FDIC would initiate coverage of up to $250,000 in the event of a problem at MCB, but the FDIC did not cover Voyager's failure.