Voyager to begin processing cash withdrawals next week

Quick Take

  • Voyager on August 4 received approval to honor cash withdrawals with the funds held in custody at Metropolitan Commercial Bank.
  • Today, the firm announced it will begin processing cash withdrawals on August 11. 

Voyager will begin processing cash withdrawals next week, according to a new announcement from the lender.

Voyager's account was frozen as part of its Chapter 11 bankruptcy proceedings, but yesterday a judge approved  the firm's proposal to restore access. 

Voyager has been advocating to honor cash withdrawals from its Metropolitan Commercial Bank (MCB) account as part of its Chapter 11 bankruptcy proceedings, which began soon after it halted all withdrawals. MCB held $270 million in custody for Voyager customers. 

Voyager announced today it will begin honoring cash withdrawals only on Thursday, August 11. Those with cash in their accounts will be able to withdraw up to $100,000 each 24 hours and should receive the funds within 5-10 days of their request, according to Voyager. Directions will be sent to those with cash balances. 

"Requests will be processed as quickly as possible but will require some manual review, including fraud reviews and account reconciliation, and timing will depend, in part, upon the individual banks to which customers transfer their cash," said Voyager in a statement.

Voyager last month entered Chapter 11 bankruptcy protection, which allows insolvent firms to continue operations as they reorganize to pay creditors. The ability to honor cash withdrawals is a step forward, though more than $1 billion in crypto remains on the platform and in limbo. The federal bankruptcy court has approved a set of bidding procedures, which will lay out how other firms may place bids on the assets for the purpose of reorganization.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Aislinn Keely joined The Block in the summer of 2019. She is a member of the outlet's policy team, holding down the legal beat. Before The Block, she lent her voice to the NPR affiliate WFUV, where she reported and anchored newscasts in addition to some podcast work. Aislinn is a proud Fordham Ram and editor-in-chief emerita of its newspaper. When she isn't writing or reporting, Aislinn is running and rock climbing.