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HomeBTCCreditors withdraws $250 million from bankrupt firm Voyager Digital

Creditors withdraws $250 million from bankrupt firm Voyager Digital

Approximately a year after closing the firm and filing for Chapter 11 insolvency, bankrupt cryptocurrency lender Voyager Digital allowed investors to begin withdrawals.

Dune Analytics data of July 10 shows that since June 23, the platform has lost more than $250 million. Voyager reopened withdrawals to users, and since then, there has been a total outflow of $250 million in cryptocurrency. 

The site currently has clean asset ratio of 96.15% and crypto assets of $176 million. In addition, there are other assets like 27,363.7 ETH, 2,287.4 BTC, 2,060 trillion SHIB and 18,558,340 USDC.

After the Terra ecosystem collapsed and wiped out more than $40 billion in investor monies, Voyager Digital filed for insolvency. The digital currency lender experienced a major liquidity difficulty due to significant withdrawals, and it ultimately filed for bankruptcy.

The restructuring plan was approved by the court on May 17. Customers would first get 35.72% of their claims, as per the plan. After waiting 30 days, they can opt to withdraw this sum as cash or digital currency via the Voyager app.

However, Hage stated that Three Arrows Capital, a defunct cryptocurrency hedge fund, still owed Voyager $650 million in the filing.

Customers can access slightly over 35% of their funds in the initial round of withdrawals, but once this initial distribution is complete, the primary focus will be on locating additional assets to be sent to creditors.

Moreover, creditors will also have access to an extra $445 million in customer funds, although this will rely upon the way Alameda Research’s preferred claim against Voyager. It is unlikely that this resolution will be implemented till at least mid-September 2023.

Due to ongoing lawsuits against Binance, the US government intervened via organisations like the US SEC and the Department of Justice and blocked Binance’s plans to purchase Voyager for $1 billion.

Investors who have been unable to withdraw their money for more than a year would feel some comfort if withdrawals were to resume soon.

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