(Reuters) - The U.S. Bankruptcy Court in New York has given crypto firm Voyager Digital Holdings Inc the approval to return $270 million in customer cash, the Wall Street Journal reported on Thursday. Voyager, one of several firms to struggle in the wake of broad crypto market turmoil, filed for Chapter 11 last month. The regulators said that the company just had a deposit account at Metropolitan Commercial Bank, and customers investing via its platform had no FDIC insurance. Crypto lenders like Voyager boomed during the COVID-19 pandemic, drawing depositors with high interest rates and easy access to loans rarely offered by traditional banks. However, the recent slump in crypto markets - sparked by the downfall of two major tokens in May - has hurt lenders.

Source: Wall Street Journal June 11, 2024 15:47 UTC