Voyager Financial settled with the Federal Trade Commission over deceptive claims about FDIC insurance of customer accounts. Furthermore, Voyager will no longer handle assets for consumers.
A firm lured customers with promises of 9% rewards on USDC deposits and stablecoins’ safety against volatile cryptocurrencies; however, bear market conditions and debt issues led to its collapse last year.
1. Bankruptcy
Investors in cryptocurrency are known for their faith, yet news that customers of Voyager crypto bankruptcy likely won’t receive all their funds back has sent shockwaves through the cryptocurrency community. It sets a new precedent for how digital assets and claims should be valued during bankruptcy proceedings.
One customer named Magnolia revealed during a Voyager town hall that she had more than $1 Million locked away on the platform – funds set aside to pay for college tuition for her children – that had taken 24 years of savings to accumulate on Voyager and she hoped they’d eventually see it returned back home.
Voyager customers were informed they may receive a combination of cryptos, proceeds from 3AC recovery, and common shares in the newly reorganized company. Furthermore, they will have the option of moving assets out of Voyager app into Exodus, an established self-custody wallet which has been around since 2007. Exodus is one of the most highly-rated wallets available.
2. Data Breach
Voyager Digital experienced both a bankruptcy filing and potential data breach when they started allowing customers to withdraw funds last month. According to court documents, scammers are targeting Voyager’s customers by accessing personal accounts for fraudulent websites rerouting funds back through them.
Voyager’s lawyers reported being made aware of numerous instances of phishing and scams involving customers’ names, addresses, phone numbers and claim amounts. Law enforcement as well as other professionals were asked to investigate these events further.
The price of VGX may be determined by changes on the Voyager platform, partnerships formed, regulatory decisions impacting the company, as well as market performance – such as an upswing in cryptocurrency prices; for example if markets experience an upward trend this could drive up its price; but bear in mind that prices can fluctuate and that past performance cannot guarantee future outcomes; any predictions regarding its price should therefore be treated with caution.
3. Withdrawals
Voyager was drawn into the crypto market boom last year when customers were lured in with promises that their funds were secure, with access to it whenever needed. Unfortunately, as soon as the market crashed, many of their deposited funds lost value, while Three Arrows Capital (3AC) defaulted on its $670 million loan agreement with Voyager further compounding problems for them.
Voyager Digital’s bankruptcy plan administrator, Paul Hage, disclosed in a court filing this week that Voyager Digital plans to reopen its app to enable withdrawals between June 20 and July 5. He estimated the window for withdrawals would last roughly 30 days.
Voyager customers left stranded by its liquidity crisis can rejoice; however, withdrawals will only return a portion of their investments, due to Voyager’s exposure to 3AC.
4. Exodus Self-Custody
Private wallets give you full control of your cryptocurrency and are the safest way to hold it. As these wallets don’t ask for KYC or store any personal information about their users, if something should happen to your computer or hard drive with Exodus wallet on it containing funds that belong to you no one can gain access.
Exodus offers extensive security measures and has an exceptional track record in quickly fixing any bugs found within their software, while boasting outstanding customer service that has earned an overall 4.6 star rating on both Apple App Store and Google Play stores.
One major drawback of Exodus is their closed source code, which may pose issues for those looking for full transparency. On the upside, Exodus boasts an experienced cybersecurity team and an impressive track record of creating secure wallets – something particularly crucial in an arena such as cryptocurrency where scams are prevalent.
