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Voyager Digital Resumes Withdrawals with $250 Million Outflow 

TL;DR

  • Voyager Digital, a bankrupt crypto lender, has reopened withdrawals, allowing investors to access their funds after a year of halted transactions.
  • Since the resumption of withdrawals, the platform has experienced a significant outflow of funds, with over $250 million worth of crypto assets flowing out.

Voyager Digital, a bankrupt crypto lender, has recently allowed investors to resume withdrawals after nearly a year of halted transactions. Since the reopening of withdrawals on June 23, more than $250 million worth of crypto assets have flowed out of the platform. This article delves into the implications of Voyager Digital’s bankruptcy, the withdrawal process, and the ongoing legal actions surrounding the company.

Voyager Digital Reopens Withdrawals, Faces Major Outflow of Funds

After filing for Chapter 11 bankruptcy and shutting down withdrawals, Voyager Digital recently permitted investors to regain access to their funds. However, this move has resulted in a net outflow of over $250 million worth of crypto assets from the platform. Currently, Voyager Digital holds $176 million worth of crypto assets, reflecting a Clean Asset ratio of 96.15%. These assets include prominent cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), USDC, and SHIB.

Under the bankruptcy plan approved by the court on May 17, Voyager Digital customers are set to receive 35.72% of their claims initially. They have the option to withdraw this amount as either cryptocurrency through the Voyager app or as cash after a waiting period of 30 days. This first round of withdrawals aims to provide immediate relief to investors who have had their funds stuck for over a year.

Recovery Efforts and Ongoing Legal Challenges

While the initial distribution provides customers with access to a portion of their funds, Voyager Digital’s focus remains on recovering additional assets to distribute to creditors. It has been reported that Three Arrows Capital, a bankrupt crypto hedge fund, still owes Voyager $650 million. Resolving this debt is crucial for the platform’s financial recovery.

Additionally, $445 million of customer funds will be made available to creditors, pending the resolution of Alameda Research’s preference claim against Voyager. However, this resolution is not expected until at least mid-September 2023. The outcome of this legal challenge will significantly impact the overall recovery for Voyager Digital’s creditors.

The Binance Acquisition and Government Intervention

The bankrupt Voyager Digital caught the attention of Binance, one of the largest cryptocurrency exchanges globally, which expressed interest in acquiring the platform for $1 billion. However, the proposed deal was halted by the U.S. government, represented by agencies like the Securities and Exchange Commission (SEC) and the Department of Justice. Ongoing legal actions against Binance were cited as the reason behind the intervention.

The U.S. government’s intervention to halt the Binance acquisition of Voyager Digital was primarily due to the ongoing legal actions against Binance. The Securities and Exchange Commission (SEC) and the Department of Justice deemed it necessary to prevent the acquisition from moving forward.

Conclusion

Voyager Digital’s decision to resume withdrawals after a prolonged period of halted transactions has resulted in a significant outflow of funds, totaling over $250 million. The bankruptcy plan offers initial relief to customers, allowing them to access approximately 35.72% of their claims. The platform’s focus remains on recovering additional assets to distribute to creditors, with the resolution of ongoing legal challenges crucial to its financial recovery. While the company’s path to stability remains uncertain, the resumption of withdrawals brings hope to investors who have experienced a prolonged period of fund lock-up.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Haseeb Shaheen

As a Web Researcher and Internet Marketer, Haseeb Shaheen delivers relevant valuable content for audiences. He focuses on financial and crypto market analysis, as well as technology-related areas that help people change their lives.

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