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On October 24th, Moodys maintained Frances sovereign credit rating at Aa3, refraining from a downgrade, but warned that slowing economic growth, a widening fiscal deficit, rising financing costs, and social protests could hinder fiscal consolidation. Frances fiscal deficit this year is projected to reach 5.4% of GDP, and the government plans to reduce the deficit to 5% by 2027, but the budgets passage remains uncertain due to a lack of parliamentary majority support. The French National Assembly rejected the revenue portion of the 2027 social security budget on Friday, and the main budget will continue to be reviewed next week. French bond market pressures persist, with yields rising among the highest of developed economies this month, reaching a 24-year high; the spread between French and German 10-year bond yields widened to 178 basis points on Thursday, compared to 85 basis points in early September. France has also recently been downgraded by Scope, and Morningstar DBRS revised its outlook to negative; S&P is expected to update its rating on November 27th.Barclays: Inventory depletion and recovering demand are tightening the spot market. Despite policy efforts to ease diesel supply shortages, short-term oil price risks remain clearly skewed to the upside.Barclays: The conflict with Iran is unlikely to subside quickly, further tightening the already tense spot oil market.On October 24th, Cuban Foreign Minister Rodriguez refuted the USs claim that Cuba would be "settled incidentally" after the war with Iran, stating on the 23rd that Cuba rejects all threats from the US. Rodriguez stated on social media that Cubas coast has beautiful beaches as well as jagged reefs, and it will not be friendly to those who come with hostility and a desire for conquest. Earlier that day, US President Trump, at a campaign rally in Florida, claimed that the US was prepared to "settle down" the Cuban issue after ending the war with Iran.The Central Bank of Brazil approved several resolutions to strengthen the responsibilities of financial institutions in providing and disbursing credit.

What the Voyager Digital Bankruptcy Means for Your Cash and Crypto

Skylar Shaw

Jul 12, 2022 14:43

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After publishing an update on the assets kept by users on its platform, Voyager (OTCMKTS:VYGVF) is once again in the news. This is the most recent development in the tale since Voyager Digital filed for bankruptcy on July 6.


Since Voyager stopped all withdrawals, deposits, and incentives on July 1st, users have been living in a world of uncertainty. The collapse of the cryptocurrency hedge fund Three Arrows Capital was cited as the reason for the crypto lender's decision to file for Chapter 11 bankruptcy (3AC). Before 3AC disclosed its insolvency, Voyager had financed it $650 million.


If the Federal Deposit Insurance Corporation (FDIC) is backing the US dollars (USD) on the platform is another contentious issue (FDIC). The FDIC is now investigating Voyager's client outreach for deposit insurance.


However, based on the most recent business update, it seems that Voyager clients will be able to receive their USD back. Now let's discuss the specifics.

What Your Cash and Crypto Means After the Voyager Digital Bankruptcy

According to the update, Voyager maintains USD in a Metropolitan Bank For Benefit of Customers (FBO) account (NYSE:MCB). The USD balance in each customer's account is the same as the USD balance Voyager has in its FBO account. Customers' USD will thus be available following "a reconciliation and fraud prevention procedure" and is FDIC-insured. Voyager stressed:


"To be clear: Voyager does not handle client cash; that cash is housed at MCB. FDIC insurance does not protect against the demise of Voyager."


The platform's crypto assets are a separate matter, even if it seems that the FDIC covers Voyager's USD. Currently, Voyager has around $1.3 billion worth of cryptocurrency holdings. Customers will be compensated for their current holdings under the parameters of the Chapter 11 restructuring plan with a mix of cryptocurrency and stock. Customers may choose how much common stock and cryptocurrency they want to get.


Voyager tokens and the remaining cryptocurrency were returned. Customers will furthermore get common shares in the newly reformed firm and money recovered from 3AC. Voyager points out that the suggested approach might yet alter.


Voyager is now seeking further strategic options. The potential of a "third-party investment or sale" was also acknowledged by the corporation.

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