The FDIC-insured Metropolitan Commercial (MC) Bank having accounts of the bankrupt crypto brokerage and lending firm Voyager Digital has filed a statement in court supporting the firm’s motion to honor withdrawals from the For Benefit of Customers (FBO) accounts.
In a statement filed in the United States Bankruptcy Court for the Southern District of New York, MC Bank asked the court to allow “customers to withdraw funds rightfully owing to them, and ensure the sufficiency of such funds in the account.”
Aside from honoring the withdrawals, the bank supported Voyager’s motion to liquidate crypto from customer accounts with a negative balance, sweep cash held in third-party exchanges, conduct ordinary course reconciliation of customer accounts, and continue staking crypto, and granting related relief.
It also stated that there are two Voyager-related FBO Accounts, one for wire transfers and one for Automated Clearing House (ACH) transfers and that the FBO Accounts held approximately $270 million in funds from Voyager customers.
Also Read: Former Voyager Executive Seeks a Different Restructuring Plan
Under the FBO and ACH Agreements, the crypto firm is obligated to reimburse any amounts debited if they are later determined to be fraudulent.
The client of the FDIC-insured bank, Voyager, was recently issued a joint letter demanding a “cease and desist” for making false insurance claims
