Bankrupt crypto lender Voyager Digital has agreed to transfer customer funds back into Exodus wallet, an established self-custody system.
Voyager made this decision due to prolonged market instability and Three Arrows Capital’s default on loans it owed them, both of which caused lengthy volatility for Voyager in cryptocurrency trading markets. A bankruptcy court judge approved its liquidation plan.
Voyager’s bankruptcy serves as a stark reminder of the risks in the cryptocurrency market. Its demise was precipitated by an unfortunate series of unfortunate events and missteps – such as questionable acquisitions and unpaid loans – as well as questionable acquisitions and unpaid loans. As its story shows, its failure should serve as an instructive lesson for industry to implement stringent oversight and financial practices more robust.
Since its failure, customers of this company were left in limbo as many of their assets were frozen by bankruptcy court and cannot be withdrawn from. Some have been waiting up to one year in order to be able to withdraw funds while others must sell cryptocurrency tokens in order to access their cash.
Voyager Digital’s bankruptcy has raised many concerns over customer data security. Stephen Ehrlich, one of its co-founders, is accused of misleading customers regarding the safety of their assets. Additionally, the CFTC is investigating him to see whether or not he breached derivative regulations; if found guilty he could be banned from working in cryptocurrency for life.
After attending a bankruptcy hearing earlier this month, customers of Voyager Digital can now withdraw some of their crypto assets. According to court filings by Voyager, approximately $1.3 billion worth of deposits exist at Metropolitan Commercial Bank in New York while more than $350 million have also been held in cash reserves at Met Commercial.
Voyager Digital had lured investors during its boom years with promises that deposits were FDIC insured, yet when the company collapsed consumers lost access to significant assets they had saved for retirement, college tuition or down payments on homes as well as earning attractive interest rates on USDC that originally attracted them to it.
Settlement promises refunds to affected consumers, but that won’t solve all their financial troubles. One customer, identified only by her initials, reported to a bankruptcy judge that over $1 Million remains frozen on her app; including money that was meant for their education.
VGX token is an ERC-20 token that plays an essential role in Voyager platform. Users can use VGX to get discounted trading fees, earn interest on crypto holdings, access loyalty program rewards, and securely trade multiple exchanges from one central location.
At present, there is an estimated maximum and circulating supply of 222,295,208 tokens available on VGX based on Ethereum blockchain with high levels of security backed by prominent investors such as Rob Gronkowski of Tampa Bay Buccaneers tight end fame.
Voyager crypto market continues to expand and its VGX token may increase in value over time, especially if Voyager adds services beyond cryptocurrency trading – such as offering debit card options – increasing demand for this token even more. But investing in Voyager does pose some risks so be sure you conduct adequate research before making a decision.
VOYAGER SELF-CUSTODY WALLET
Blockchain detectives are working tirelessly to unravel the chaos left by Voyager’s collapse, tracking digital footprints and uncovering wallets which had previously been hidden from view. Voyager’s bankruptcy filing has left thousands of users reeling from losses; many were attracted by its promise of 9% rewards on USDC deposits as well as perceived security provided by stablecoins over volatile cryptocurrencies.
Voyager is providing its customers with some funds back, and you can withdraw your cryptocurrency using Exodus self-custody wallet – one of the longest running and highest-rated in the industry.
The wallet was designed to be user-friendly, offering secure cold storage that keeps hackers at bay. Furthermore, the wallet boasts several features to enhance your investing experience, including its unique smart order routing system and advanced market data. You can fund your account using US dollar bank transfers or crypto transfers of limited number of coins.