Voyager Users Are Unlikely To Recover 100% Of Their Investment.
Voyager users may not receive all of their money since the crypto lending company has entered bankruptcy, according to Bloomberg News.
According to the filing, Voyager anticipates that its users’ funds will be threatened throughout the bankruptcy. Account holders are unlikely to receive a complete refund because the company may be restructured or sold.
Account holders are more likely to be repaid with crypto holdings, equity in the restructured company, the outstanding $650 million loan from Three Arrows Capital (3AC), and its native coin VGX.
Customers holding US Dollar accounts, according to Voyager, will receive their full deposit after completing a “reconciliation and fraud prevention process” with Metropolitan Commercial Bank.
The American bank verified that the company has an Omnibus account, but added that:
“FDIC insurance does not protect against the failure of Voyager, any act or omission of Voyager or its employees, or the loss in value of cryptocurrency or other assets.”
Meanwhile, the Toronto Stock Exchange has halted trading in Voyager stocks. The stock exchange is presently determining whether the bankrupt firm fits the criteria for continued listing.
According to court documents, the company did not retain its customers’ crypto assets in separate wallets. The lender divided the assets into asset pools for Bitcoin (BTC), Ethereum (ETH), and other cryptocurrencies.
The crypto lender’s platform contains $1.3 billion in crypto assets from lenders such as Galaxy Digital LLC, Alameda research, and Wintermute trading.
With a debt of $376.8 million, Sam Bankman-Fried’s Alameda research is the company’s second-largest debtor.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Patrick
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