Voyager Digital says it is seeking court approval to allow users to access their balances

Voyager suspended withdrawals on July 1, leaving customers without access to their balances for three weeks. Now, bankruptcy and restructuring proceedings could allow customers to regain access to their account balances. Voyager says one of its final appeals is seeking court approval to allow customers to withdraw their funds.

These funds are USD balances stored in accounts For Benefit Of (FBO) At the Metropolitan Commercial Bank.

Voyager said it plans to process users’ withdrawal requests in the normal course of business. However, that plan depends on the outcome of the next court hearing on August 4.

The company also provided a funding update. It said it is seeking court approval to sell Coinify, a company it acquired last year. It added that it had previously received court approval to pay employees and other operating costs.

FTX proposes joint exit plan

In conjunction with Voyager’s plans, FTX has proposed to allow withdrawals via its own platform in a cooperative manner. Under this proposal, FTX’s sister company Alameda Research would purchase Voyager’s digital assets and digital asset loans for cash at market value.

Voyager users could then access their funds by opening an FTX account. This would be optional, and customers who chose to participate could withdraw their cash balance without using other FTX services. Alternatively, users could continue to invest in crypto-currencies with fees waived for the first month.

FTX differentiated its offering from Voyager’s plan, noting that it “recognizes[s] that Voyager may have other means of providing cash to its customers “through FBO accounts and that it would include or exclude such accounts if necessary.

Sam Bankman-Fried, CEO of FTX, said Voyager customers “did not choose to be bankrupt investors holding unsecured debt.“He explained that his offer is intended to “establish a better way to rescue an insolvent crypto-currency business.“

Bankman-Fried has already come to Voyager’s rescue. In June, his other company, Alameda Research, loaned Voyager $485 million in cash and crypto. The loan came after Three Arrows Capital (3AC) defaulted on a loan of similar value.

FTX said its current offer would not involve FTX acquiring any Voyager loans or litigation claims related to Three Arrows Capital. It stated that Voyager would continue to handle these matters itself.

FTX requested a response by July 26 and says it aims to close the deal in early August. Voyager, for its part, did not say whether it would accept the offer.