• Voyager Digital resumed investor withdrawals on June 23, 2020 after suspending them and filing for Chapter 11 bankruptcy.
• Since reopening withdrawals, Voyager has experienced a net outflow of $250 million in crypto assets.
• The collapse of Terra affected Voyager resulting in the loss of over $40 billion in investors’ funds and liquidity crisis.
Voyager Digital Resumes Investor Withdrawals
Voyager Digital resumed investor withdrawals on June 23, 2020, nearly a year after suspending them and filing for Chapter 11 bankruptcy. According to data from Dune Analytics , over $250 million has been withdrawn from the platform since then. As of now, Voyager holds crypto assets valued at around $176 million, maintaining a Clean Asset ratio of 96.15%.
Collapse of Terra Affected Voyager
Voyager Digital faced bankruptcy following the collapse of the Terra ecosystem, which resulted in the loss of over $40 billion in investors’ funds. The crypto lender confronted a significant liquidity crisis due to substantial withdrawals, leading to its eventual bankruptcy.
Withdrawal Plan Approved by Court
Voyager implemented a withdrawal plan approved by the court on May 17. Under this plan customers initially receive 35.72% of their claims which can be withdrawn either as cryptocurrency through the app or as cash after waiting for 30 days. In addition to this Three Arrows Capital owes Voyager $650 million with an additional 445$ million available contingent upon resolution of Alameda Research’s preference claim against Voyager which is expected not before mid-September 2023..
Binance Expresses Interest
Binance had expressed interest in purchasing certain assets from Voyage during bankruptcy proceedings but no action was taken on it till now . They also proposed an asset tracking system that would enable customers to track their own digital assets from one account to another without having to keep track manually . This system will make it easier for creditors who have large amounts invested with multiple firms to keep tabs on their portfolios .
Conclusion
Overall , despite experiencing a massive outflow once they reopened withdrawals , Voyager still holds a large amount worth 176$ million in Crypto Assets . It remains unclear if Binance will take any further steps towards acquiring certain assets from Voyager during bankruptcy proceedings and when creditors will get access to remaining funds .