Voyager Transfers Tokens From Hot Wallet May Be Related To Reopen Withdrawal

Key Points:

• Voyager is transferring tokens from hot wallets, which may involve reopening withdrawals for customers.
• On June 20, the lending platform will reopen the withdrawal service for customers and allow the withdrawal of 35% of crypto assets.

Voyager is moving tokens out of hot wallets. Seems to be related to reopening withdrawals for clients. Creditors were able to withdraw about 35% of their crypto between June 20 and July 5.

Bankrupt crypto project Voyager Digital will reopen its app and allow customers to withdraw funds almost a year after the company filed for Chapter 11 bankruptcy.

Voyager bankruptcy plan manager Paul Hage said in a June 14 court filing that around June 15, its app would be updated to show the amount that can be withdrawn, and the estimated withdrawal period will be from June 20 to July 5.

This plan was first approved by the court on May 17, and it is expected that customers will receive 35.72% of their funds within 30 days of requesting withdrawal.

In the filing, Hage also noted that Three Arrows Capital had gone bankrupt and still owed Voyager $650 million. As such, this initial withdrawal only allows for the withdrawal of more than 35% of client funds, and “the main focus will shift to recovering additional assets that can be distributed to creditors” upon completion of the initial distribution.

Additionally, $445 million of customer funds could be returned to creditors pending the final resolution of Alameda Research’s priority claim for Voyager. It is not expected to happen at least until mid-September 2023.

Voyager is a lending project that went bankrupt after the 3AC fund collapsed. The main reason behind this was that the project needed more money because the 3AC fund refused to pay the debt of $650 million.

Voyager initially agreed to sell it back to FTX for $1.4 billion in October 2022 but failed because FTX went bankrupt.

Subsequently, Binance offered to acquire Voyager for $1 billion. However, this deal was withdrawn due to obstructions by the Securities and Exchange Commission and the Department of Justice.

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