Metropolitan Bank requests court permission to honor withdrawals for Voyager Digital customers

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Met­ro­pol­i­tan Com­mer­cial Bank filed a state­ment support­ing Voy­ager Digital’s request to hon­or with­drawals from its For Ben­e­fit of Cus­tomers (FBO) account on July 30.

The filed state­ment claimed that Voy­ager Dig­i­tal opened two accounts with the banks for the ben­e­fit of its cus­tomers only, and “Voy­ager does not have any claim to the cus­tomer funds in the FBO Accounts.”

The two accounts — one for wire trans­fers and the oth­er for Auto­mat­ed Clear­ing House (ACH) trans­fers — con­tain rough­ly $270 mil­lion of Voy­ager customer’s funds.

Met­ro­pol­i­tan said it wit­nessed a large influx of ACH return or charge­back requests in the ear­ly days of the case, and it imme­di­ate­ly deb­it­ed the applic­a­ble account fol­low­ing the rules.

Although it sus­pects that many of these requests were fraud­u­lent, it is up to Voy­ager to inves­ti­gate and chal­lenge the chargebacks.

Addi­tion­al­ly, the FBO and ACH agree­ments also make it the duty of Voy­ager to cov­er all the amount deb­it­ed from the applic­a­ble account.

While Voy­ager would typ­i­cal­ly do this by trans­fer­ring funds from its oper­at­ing account to the FBO account, it has not been able to do so due to the ongo­ing bank­rupt­cy proceedings.

The impasse has result­ed in an imbal­ance in the FBO account, mak­ing it impos­si­ble for cus­tomers to with­draw their funds with­out putting the par­ties in an unten­able posi­tion where “some cus­tomer accounts may come up short.”

There­fore, Met­ro­pol­i­tan Com­mer­cial Bank request­ed that the court autho­rize and direct Voy­ager “to per­form their oblig­a­tions under the FBO and ACH Agree­ments to cov­er the amounts that have been deb­it­ed from the applic­a­ble FBO Account.”

Doing this will make it pos­si­ble for Voy­ager cus­tomers who deposit­ed U.S. dol­lars to be able to with­draw their funds.

The state­ment backs up Voyager’s request for per­mis­sion from the court to “resume all ordi­nary course prac­tices con­cern­ing the FBO Accounts, allow­ing cus­tomers to with­draw funds right­ful­ly owing to them, and ensure the suf­fi­cien­cy of such funds in the account.”

Accord­ing to the bank, this relief will be just and prop­er and be in the best inter­est of all par­ties involved.

If the relief is grant­ed, at least one group of Voy­ager cus­tomers will be able to with­draw their funds.

Post­ed In: U.S., Bank­rupt­cy

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