![]() "There is a lot of work for them to do in bankruptcy court before these issues will be resolved."Ĭelsius and Voyager filed for what's known as Chapter 11, a form of bankruptcy protection that allows firms to restructure their debts. "Investors holding crypto assets through Voyager Digital and now Celsius have been placed in a difficult position, with their accounts frozen, their lawsuits stayed and the value and timing of any recoveries unknown," Besikof said. Voyager also laid out a plan to reimburse users with crypto in their accounts, Voyager shares and the company's own token, as well as any debt recovered from Three Arrows Capital.īoth Celsius and Voyager hired Kirkland & Ellis, the prestigious law firm, to represent them in court. The FDIC only offers protection of funds in the event of a bank's failure, not a crypto exchange.įor its part, Voyager says it's working through a "reconciliation and fraud prevention process" with its banking partner, after which users will be able to regain access to their cash. Voyager says its customers' dollars are kept in an FDIC-insured account at Metropolitan Commercial Bank in New York - however, this claim was contested by legal experts and the bank itself. ![]() But it's still not letting customers withdraw their funds, and hasn't offered clarity on when it will reopen withdrawals. The firm filed for Chapter 11 protection last week, revealing a $1.2 billion hole in its balance sheet and owing users around $4.7 billion.Ĭelsius claims to have $167 million in cash on hand. What happens to customers' funds in bankruptcy cases will depend a lot on the company's user agreement and how it used their assets, Besikof said.Ĭelsius' terms of use state that any funds deposited with the firm "may not be recoverable" in the event of bankruptcy. Personal Loans for 670 Credit Score or Lower ![]() Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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