The crypto world is still navigating the aftermath of several major collapses, and the story of Voyager Digital is a key chapter. After a year-long freeze due to its Chapter 11 filing, Voyager finally reopened the doors for customer withdrawals on June 23rd. But what has happened since then? Let’s dive into the numbers and see where things stand for Voyager and its users.
The Great Crypto Exodus: Over $250 Million Withdrawn
Since withdrawals resumed, a significant amount of cryptocurrency has left the Voyager platform. According to data from Dune Analytics, over $250 million has been withdrawn. This isn’t entirely surprising, given the circumstances. Customers who had their funds locked up for a year were understandably eager to regain control of their assets.
What Crypto Does Voyager Still Hold?
Despite the substantial outflows, Voyager still holds a considerable amount of cryptocurrency. As of the latest data, their holdings are around $176 million. Interestingly, Voyager boasts a Clean Asset ratio of 96.15% when you exclude their native token, VGX. This suggests a relatively healthy portfolio of other digital assets. Here’s a snapshot of their key holdings:
- Bitcoin (BTC): 2,287.4
- Ethereum (ETH): 27,363.7
- USD Coin (USDC): 18,558,340
- Shiba Inu (SHIB): 2,060 trillion
- Polygon (MATIC): 3,600,000
The Road to Recovery: How Much Are Customers Getting Back?
In May, a U.S. Bankruptcy Judge approved Voyager’s liquidation plan. This was a crucial step, paving the way for the return of approximately $1.33 billion in crypto assets to customers. While not a full recovery, it does offer some relief to those affected.
The initial distribution allows customers to recover about 35% of their cryptocurrency deposits. They have a choice: withdraw this amount as crypto directly through the Voyager app or wait 30 days to withdraw it as cash. This flexibility provides options depending on individual needs and preferences.
What About Future Recoveries?
Voyager isn’t stopping at the initial 35%. They are actively pursuing the recovery of additional assets to distribute to creditors. A significant portion of this potential recovery hinges on the defunct hedge fund, Three Arrows Capital (3AC), which owes Voyager nearly $665 million. Recovering these funds would significantly boost the amount returned to creditors.
Failed Deals: The FTX and Binance.US Saga
Voyager’s journey through bankruptcy has been marked by unsuccessful attempts to sell its assets. Remember the deal with FTX? It was supposed to be a $1.42 billion acquisition, but it spectacularly collapsed when the Sam Bankman-Fried-led exchange imploded in November.
Then came Binance.US, offering $1.3 billion. However, this deal also fell apart in April. Binance.US cited a “hostile and uncertain regulatory climate” as the reason for backing out. These failed acquisitions highlight the challenges faced by companies in the crypto space, particularly when navigating regulatory complexities.
The Ongoing Legal Battles: Voyager vs. FTX
The Voyager story isn’t over yet. The company is currently embroiled in litigation with FTX. FTX is attempting to claw back over $445 million in loan repayments made to Voyager before its own bankruptcy filing. This legal battle adds another layer of complexity to the recovery process, and a resolution isn’t expected until at least September of this year. This means further delays and uncertainty for Voyager’s creditors.
Key Takeaways for Voyager Digital Customers:
- Withdrawals are ongoing: Customers can currently withdraw approximately 35% of their deposits.
- Options for withdrawal: Choose between crypto or cash withdrawal after 30 days.
- Potential for further recovery: Voyager is actively pursuing additional funds, particularly from the 3AC debt.
- Legal hurdles remain: The litigation with FTX could impact the timeline and amount of future distributions.
- Stay informed: Keep an eye on official Voyager communications for updates on the recovery process.
Looking Ahead: What Does This Mean for the Crypto Landscape?
Voyager’s situation serves as a stark reminder of the risks associated with centralized crypto lending platforms. The significant withdrawals highlight the importance of self-custody and the desire of users to regain control of their digital assets. The failed acquisition attempts also underscore the regulatory challenges and volatility within the cryptocurrency industry.
The ongoing legal battles will be closely watched by the crypto community, as they could set precedents for how assets are handled in bankruptcy cases involving digital currencies. Ultimately, the Voyager Digital saga is a complex one, filled with lessons learned and uncertainties that continue to unfold.
In Conclusion: A Long Road to Recovery
The reopening of withdrawals for Voyager Digital customers is a significant milestone, but the journey to full recovery is far from over. While the initial 35% distribution offers some relief, the potential for further payouts hinges on ongoing legal proceedings and the successful recovery of funds from entities like Three Arrows Capital. The Voyager story serves as a cautionary tale and a testament to the resilience (and sometimes, the fragility) of the cryptocurrency ecosystem.
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.