- 1 Voyager Digital filed for bankruptcy in July 2022 as a result of the exposure to failed Three Arrows Capital hedge fund.
- 2 A sigh of relief was there for Voyager in September 2022 when Cryptocurrency exchange FTX won the bid to buy its assets.
- 3 The firm is now liquidating the funds and returning them to customers and investors. It decided to liquidate some funds while returning some in digital form to customers.
Voyager to Liquidate Funds
Voyager Digital, the crypto broker deals with FTX US to liquidate its funds and recently Binance have fallen through.
Voyager’s investors got breath in a breath at the end of September 2022 after the cryptocurrency exchange FTX won the bid to buy Voyager’s bankrupt assets. But later Cryptocurrency exchange FTX got entangled in its own crisis and went bankrupt.
Voyager filed for bankruptcy on 5 July 2022 as its failed exposure. But seems like time was not with Voyager as the person who won the bid went bankrupt.
On Friday during a filing, the voyager says that there are various digital assets on the platform that are going to be liquidated as they cannot be withdrawn and will be returned to the customer. Some funds that are going to be liquidated are ALGO ( Alogorand), CELO (Celo) and AVAX (Avalanche).
Many other cryptocurrencies which are showing considerable recovery rates are not liquidated but are returned to the customer in digital form according to the court filing. A number of major cryptocurrencies fall under this category. It includes AAVE (Aave), ETH (Ethereum), BCH (Bitcoin Cash) and 65 others.
The firm tweeted recently that they hope initial distributions begin within the next few weeks and thanked its customers for their patience. Also said that their former customers will receive some form of reimbursement soon.
Binance US walked away from a $1.3 billion restructuring deal to buy Voyager assets last week. Binance US is a sister company of the crypto exchange Binance which now runs independently. The decision to terminate the deal came after months of wrangling and intervention of multiple federal and state regulators over the deal. It says the reason is some regulatory climate change in the USA.
Last year, after having massive exposure to failed crypto hedge fund Three Arrows Capital, digital asset broker Voyager blew up.
The firm since then has been trying to find a way to return the funds of all the investors who used its services. Crypto Exchange FTX was to buy Voyager’s distressed assets but things turned out another way and Crypto Exchange FTX itself was bankrupt in a highly publicized and unexpected collapse which shook the crypto ecosystem from the heart.
Its ex-boss and founder Sam Bankman- Fried has been charged with 13 criminal charges since then and has been waiting for his trial for a long time. He also gave up the position later.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.