Voyager announced in a blog post that it will return customers their USD deposits by May 15 without receiving any objections to its plan. Should no objections be raised by this date, Voyager’s plan will become fully implemented.
Magnolia is one of millions of Voyager customers left confused after withdrawals were discontinued and bankruptcy proceedings filed by Voyager. She needs answers.
FTX buys the assets of Voyager Digital
Binance Americas announced it has won the auction of Voyager Digital assets, a cryptocurrency lender whose collapse heightened this year’s industry crisis. This deal of $1.4 billion should bring closure to one of 2021’s more tragic cryptocurrency stories.
Court filings indicate the sale price reflects Voyager’s estimated market value as well as additional consideration worth approximately $111 million, according to court filings. According to company filings, they selected FTX US because it will “maximize value for creditors and other stakeholders,” enabling customers to migrate their holdings once the bankruptcy process is concluded.
Binance had previously considered purchasing Voyager but later dropped out after their CEO revealed a previous bid as “low-ball bid dressed up as white knight rescue.” Voyager filed for bankruptcy this week and auctions for its assets began this week – both the Federal Reserve and FDIC have strongly advised it against falsely representing customer funds as being insured as though held at bank accounts.
Voyager Digital reopens its app
Voyager stays abreast of changes to regulatory policies and collaborates closely with industry leaders, so as the crypto market develops, Voyager remains dedicated to meeting its users’ needs.
Voyager Digital will begin offering customers access to some of their frozen assets as early as June 20, nearly one year after filing for bankruptcy. According to Voyager’s bankruptcy proceedings administrator, an update would be available by June 15 detailing available withdrawal amounts and time frames from June 20 through July 5. The administrator said the app would also be updated by this point for this process, which runs between these dates.
Creditors can expect to recover about 35% of their money. Furthermore, Voyager expects that an additional $445 million owed by Three Arrows Capital’s bankrupt crypto hedge fund – Three Arrows Capital is due by mid-September 2023 for this additional amount owed.
Voyager Digital files for bankruptcy
Voyager Digital filed for Chapter 11 bankruptcy protection in the US due to an unsustainable decline in assets and liabilities. The cryptocurrency buying, trading, lending platform boasts more than $10 billion worth of assets and debts.
The company boasts cash and crypto assets available that will allow it to continue operations, as well as $350 million held in trust for customers at Metropolitan Commercial Bank.
Voyager Digital announced in its statement that its app will reopen for 30 days in June and users with U.S. dollar deposits would have access to them after a reconciliation and fraud prevention process is concluded with their bank. Customers would receive their cryptoassets, proceeds from recovering funds lent to 3AC, as well as common shares in its newly organized firm.
The company has also come under attack from an unknown hacker, with them having stolen customer information and login credentials from customers who invested. Some customers claim they have lost more than they invested; one woman identified only as Magnolia said she had $1 Million locked up in her account that she saved to pay for her children’s college education – this loss has been devastating for her.
Voyager Digital has a potential data breach
Voyager Digital cryptocurrency broker was recently the target of an attack, impacting services but assuring users their funds remain safe. After the incident, Voyager’s website went down temporarily for maintenance but trading has since resumed normally.
Voyager attorney Darren Azman provided details about a possible data breach that may have compromised customers. Azman noted that customers may have fallen prey to scams that attempt to gain access to digital wallets through creating fraudulent websites promising higher payouts if customers link non-Voyager wallets with new accounts, but then drain these accounts of funds, according to him.
FTX’s bid to acquire Voyager’s assets and bring its customers onto its trading platform is notable because it highlights two areas CFIUS is attentive to: foreign investors who may have direct or indirect ties to companies or countries of concern, and businesses operating within an industry with national security implications.
