Latest Developments on Voyager Digital
Voyager Digital has recently announced a significant financial update, revealing that it has secured a total of $484.35 million from various sources. This amount comes as part of ongoing efforts to recover funds and stabilize their financial situation following their bankruptcy. Stakeholders can expect additional payments in the coming years as assets are sold and litigation claims are resolved. Importantly, all uncashed checks issued by Voyager will be deemed unclaimed and canceled after April 20, 2024.
The Impact of 2022 on Cryptocurrency Investments
The year 2022 proved to be a challenging time for the cryptocurrency sector, creating widespread uncertainty among investors. Major lending platforms, including Celsius, FTX, and Voyager, faced serious challenges during this period. As the situation begins to stabilize, many investors are left wondering about the prospects of recovering their funds invested in Voyager.
Voyager’s Bankruptcy and Recovery Efforts
Following its bankruptcy declaration, Voyager Digital is actively engaged in the process of recovering its funds. The company is grappling with several hurdles, including security issues and a substantial number of uncashed checks totaling $17 million. Recently, Voyager celebrated a significant achievement by securing $484.35 million from a variety of sources, including settlements from FTX, Three Arrows Capital (3AC), and Directors and Officers (D&O) insurance. To streamline operations, the company has set a deadline of April 20, 2024, to address the cancellation of all pending checks.
Understanding Voyager’s Crypto Exchange
Founded in 2017, Voyager aimed to create a user-centric platform for trading cryptocurrencies. The exchange quickly gained traction by offering commission-free trading and access to a diverse array of digital assets. However, in early 2021, a surge in user activity and trading volume put a strain on Voyager’s infrastructure, leading to technical issues and delays in order processing, which affected customer service. Despite these challenges, Voyager continued to develop its services to meet the increasing demand.
Consequences of Voyager’s Bankruptcy Filing
The announcement of Voyager’s bankruptcy filing sent ripples through the cryptocurrency industry, especially when it revealed a significant default on loans totaling 15,250 BTC and 350 million USDC from Three Arrows Capital in June 2022. These loans, which were uncollateralized, accounted for over half of Voyager’s loan portfolio, raising alarms regarding the exchange’s financial health. Furthermore, the bankruptcy filing highlighted that a substantial portion of Voyager’s largest unsecured claims were from retail customers, with claims ranging from approximately $9.77 million to $955,417, signaling the widespread impact of the exchange’s financial troubles.
Steps to Recover Your Crypto from Voyager
To initiate the recovery of cryptocurrency from Voyager, users need to transfer all available assets from their Voyager accounts to a designated wallet address. This transfer can be made to another U.S.-based exchange or a self-custody wallet of the user’s choice. It is essential to complete this transfer within a specified 30-day period. Failure to do so may result in receiving the recovery in U.S. dollars, which could be subject to market variations. Users should also be aware that if their token balance falls below the necessary transfer fees, those assets will be liquidated, and repayment will be made in U.S. dollars.
What to Expect in Terms of Crypto Recovery
Voyager Digital’s repayment strategy aims to return roughly 35% of the cryptocurrency deposits made by its customers. The approved liquidation plan outlines the distribution of approximately $1.33 billion in crypto assets to customers. The exact amount each customer will receive depends on their initial deposit and the proportional share in the distribution. Factors like the type of cryptocurrency deposited and any applicable fees may influence the final recovery amount. Additionally, ongoing litigation with FTX, which seeks to recover $445.8 million in loan repayments, could potentially increase the expected recovery to 63.74% if successful.
Unsupported Cryptocurrencies and Repayment Options
For customers who deposited unsupported cryptocurrencies on Voyager, the repayment process will not involve returning those specific assets. Instead, Voyager plans to compensate customers with the stablecoin USDC for unsupported cryptocurrencies and its proprietary VGX token deposits, ensuring that customers still receive equivalent value for their holdings.
Options for Transferring Voyager Funds
Users have several choices when it comes to transferring their funds from Voyager. They can opt to send their cryptocurrency to a different exchange that supports the assets they wish to transfer, or they can choose to move their funds to a self-custody wallet, allowing for greater control over their private keys and enhanced security. Other options include utilizing cold storage wallets for maximum security, such as hardware wallets or securely generated paper wallets. When selecting the destination for their Voyager funds, users should consider factors such as security, ease of use, and the specific cryptocurrencies supported by the chosen platform or wallet.
