Voyager Digital’s bankruptcy has sent shockwaves through the crypto community, leaving its customers anxious.
At this week’s bankruptcy hearing, Magnolia testified about her experiences. She claimed she had over seven figures stranded on the app.
1. FTX Takes On Voyager’s Assets
FTX US, owned by billionaire Sam Bankman-Fried and its bidding team valued at $1.4 billion – which includes both cryptocurrency market value and “additional consideration” worth an additional $111 million – has won an auction to acquire Voyager Digital assets.
Voyager sale plans will be presented to bankruptcy court on October 19 and subject to creditor vote. Unsecured creditors committee announced it will soon send proof-of-claim forms directly to customers detailing what they owe in cryptocurrency and cash.
Judge Wiles had allowed eligible Voyager users to withdraw $270 million of the company’s cash held with Metropolitan Commercial Bank. But funds held in cryptocurrency remain frozen pending an answer is reached. Anxious Voyager customers have shared their stories online about emotional and financial hardship they are currently experiencing – some have lost down payments on houses while others must postpone retirement plans or defer their children’s college education as a result of these delays.
2. Exodus Launches Self-Custody Wallet for Voyager Customers
The collapse of crypto lending platforms Voyager and FTX has shaken investor trust in centralized exchanges and caused many to move their holdings from them into self-custodied wallets. Voyager’s bankruptcy filing and subsequent withdrawal halt has further raised investors’ anxiety that they do not control their assets.
Voyager customers have come together on YouTube to hold a virtual town hall to share their stories and seek assistance from others. Magnolia described how Voyager attracted her with its promise of yielding 9 percent on USDC deposits as well as its perception as more secure compared to more volatile cryptocurrencies like BTC or Ethereum.
At Voyager’s town hall on Tuesday evening, over 4,000 attendees and many others who participated via livestream registered as attendees and voiced their opinions over time. One customer, who did not wish to be identified, pleaded with Hage, the company’s bankruptcy lawyer, to address issues surrounding alleged misrepresentation of FDIC deposit insurance coverage; Hage responded that Voyager will soon shift focus toward recovering cryptocurrencies for distribution rather than discussing USDC specifically.
3. FTC Files Suit Against Voyager
From at least 2022 until it declared bankruptcy in July, Voyager Digital lured consumers with promises that its platform was safe and trustworthy like traditional financial institutions – something CEO Stephen Ehrlich repeatedly claimed online and via social media posts, according to CFTC allegations.
According to the CFTC, Ehrlich and Voyager falsely advertised their customers’ funds were protected by the FDIC. Furthermore, Ehrlich and Voyager offered incentives for depositors to convert into USD Coin, a stablecoin tied directly to U.S. dollar value.
The CFTC’s lawsuit against Voyager and Ehrlich seeks restitution, disgorgement, civil monetary penalties and permanent trading and registration bans; as of this writing no settlement agreement has been reached. Furthermore, Ehrlich’s wife is named as relief defendant as she received funds that can be linked back to his alleged deceptive practices outlined in the complaint.
4. VGX Token Price Increases
Voyager token prices have seen an upswing following the company’s bankruptcy hearing. Customers with their crypto assets still within Voyager will now have an option to withdraw them and move them over to Exodus, an established and highly-rated self-custody wallet.
VGX prices are determined by supply and demand on cryptocurrency exchanges, where more people want to buy a coin, its price increases. When more people sell that same coin, its price decreases, making its fluctuation unpredictable and quickly changing.
Investors can use technical indicators and trading signals to make informed decisions regarding VGX token. RSI and MACD indicators can assist traders in determining if the price of VGX is overbought or oversold; these tools can also be used to identify entry/exit points. Nonetheless, investors must conduct their own research and practice proper risk management as no investment system can guarantee success; its outcome depends on how much risk each trader takes when taking advantage of them.