Customers of Voyager Digital, the bankrupt crypto lender, have wasted no time in withdrawing their funds, resulting in a significant outflow of $250 million in crypto assets.
Quick facts:
- Voyager Digital customers withdraw $250 million in crypto assets after a year-long suspension.
- The net outflow of funds occurs as investors take advantage of reopened withdrawal option.
- Voyager Digital holds $176 million in crypto assets, with a Clean Asset ratio of 96.15%.
- Resumed withdrawals bring relief to investors awaiting access to their funds amid bankruptcy proceedings.
After almost a year of suspended withdrawals and filing for Chapter 11 bankruptcy, Voyager Digital recently reopened its withdrawal service on June 23.
Since then, investors have taken advantage of the opportunity to retrieve their funds, leading to a net outflow of $250 million worth of crypto assets from the platform.
Voyager Digital Holds $176 Million in Crypto Assets
Currently, Voyager Digital holds approximately $176 million in crypto assets, maintaining a Clean Asset ratio of 96.15%. These assets include popular cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), USDC, SHIB, and more, according to data from Dune analytics.
Voyager Digital’s financial troubles arose following the collapse of the Terra ecosystem, which resulted in the loss of billions of dollars for investors. The subsequent surge in withdrawals caused the crypto lender to face severe liquidity issues, eventually culminating in its declaration of bankruptcy.
To address the situation, a bankruptcy plan was approved by the court on May 17. Under this plan, customers are entitled to receive an initial payment of 35.72% of their claims.
They have the option to withdraw this amount either as cryptocurrency through the Voyager app or as cash after a 30-day waiting period.
It was revealed in the bankruptcy filing that Three Arrows Capital, a bankrupt crypto hedge fund, owes Voyager Digital a substantial amount of $650 million.
While the current focus is on allowing customers access to a portion of their funds, efforts are underway to recover additional assets for distribution among creditors once the initial payment is completed.
Furthermore, there is a possibility of an additional $445 million in customer funds being made available to creditors, pending the resolution of Alameda Research’s preference claim against Voyager. However, the resolution of this claim is not expected until at least mid-September 2023.
A Sense of Relief
The attempt by Binance to acquire Voyager Digital for $1 billion was hindered by regulatory actions initiated by the US government, including legal actions by the Securities and Exchange Commission and the Department of Justice against Binance.
The resumption of withdrawals at Voyager Digital brings a sigh of relief to investors who have patiently awaited access to their funds for over a year.
As the outflow of crypto assets continues, Voyager Digital navigates its bankruptcy proceedings, striving to recover assets and ensure fair distribution among its creditors.
