Last week, on July 5, 2022, Voyager started a voluntary restructuring process under Chapter 11 to create an efficient path to resume account access and return value to customers. We know you have many questions, and we are working through the process as quickly as we can to give you answers. Below we’ve responded to your most pressing inquiries.
How does the reorganization process impact my cash?
We are working to restore access to USD deposits, which belong to customers, and will go back to those same customers, subject to a reconciliation and fraud prevention process.
Is my money safe, and will I get all of it back?
Customer USD is held in a special type of bank account called a For Benefit of Customers (“FBO”) account at Metropolitan Commercial Bank of New York (“MCB”). The amount of USD held in the FBO account is equal to the amount of USD in customer accounts. USD deposits will be available after a reconciliation and fraud prevention process.
Is the Cash in my account FDIC insured?
Yes. Cash in your Voyager cash account is held by Metropolitan Commercial Bank (MCB), a member of the FDIC. That means in the event of MCB’s failure, up to a maximum of $250,000 per Voyager customer is eligible for FDIC deposit insurance assuming regulatory requirements are met. FDIC insurance does not protect against the failure of Voyager and to be clear: Voyager does not hold customer cash.
Why did your website change the way it talked about FDIC insurance?
Voyager worked with the FDIC in early 2021 and again in early 2022 to update and clarify the language on its website. Please also see Voyager’s customer agreement, which provides further details on the regulatory treatment of cash deposits and the scope of FDIC insurance. Outdated pages of a blog from 2019 are updated to be consistent with this clarification.
What will happen to the crypto in my account?
Voyager currently has approximately $1.3 billion of crypto assets on its platform, plus claims against Three Arrows Capital ("3AC") of more than $650 million (it fluctuates due to the exchange rate between Bitcoin and USD).
Under Voyager’s proposed reorganization plan that was presented on Friday, which is subject to change and requires Court approval, customers will receive a combination of the following, with the ability to select the proportion of crypto and common equity they receive, subject to certain maximum thresholds:
- Pro-rata share of crypto;
- Pro-rata share of proceeds from the 3AC recovery;
- Pro-rata share of common shares in the newly reorganized Company; and
- Pro-rata share of existing Voyager tokens.
Can you tell me how much of my crypto I’ll get back?
At this stage, we are proposing that customers will receive their crypto as described above. However, the exact numbers will depend on what happens in the restructuring process and the recovery of 3AC assets. We understand how important this issue is and will provide updates as soon as possible.
Is this the final reorganization plan?
The plan is subject to change, negotiation with customers, and ultimately a vote. In Voyager’s case, customers are the primary creditors and will have an opportunity to vote on the proposed Plan of Reorganization. We put together a restructuring plan that would preserve customer assets and provide the best opportunity to maximize value. In addition, the Company is pursuing various strategic alternatives to evaluate the value of the standalone company compared with a third-party investment or sale.
