{"id":52167,"date":"2023-06-15T09:16:50","date_gmt":"2023-06-15T13:16:50","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=52167"},"modified":"2023-06-15T09:16:54","modified_gmt":"2023-06-15T13:16:54","slug":"voyager-digital-to-allow-partial-withdrawals-amid-bankruptcy-woes","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/voyager-digital-to-allow-partial-withdrawals-amid-bankruptcy-woes\/","title":{"rendered":"Voyager Digital to Allow Partial Withdrawals Amid Bankruptcy Woes"},"content":{"rendered":"\n

Voyager Digital, a crypto lender that filed for Chapter 11 bankruptcy in July, has announced a plan to return some of its customers\u2019 assets. The company was hit hard by the collapse of its creditor, Three Arrows Capital<\/a>, and a failed buyout attempt by Binance.US.<\/p>\n\n\n\n

\"Voyager<\/figure>\n\n\n\n

According to Paul Hage, the bankruptcy plan administrator, Voyager Digital will update its app on June 15 to show the amounts due to customers in the initial distribution of funds. <\/p>\n\n\n\n

He said customers could withdraw crypto funds\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> between June 20 and July 5, followed by fiat withdrawals. Customers will receive back 35.72% of their assets in this first round.<\/p>\n\n\n\n

However, Hage warned<\/use><\/svg><\/span><\/a> that processing withdrawal requests could take three to seven days, depending on the volume, security, and technical factors. <\/p>\n\n\n\n

He also said that customers would be repaid with the same type of cryptocurrency they had in their accounts, except for unsupported cryptocurrencies and Voyager\u2019s VGX token, which will be converted to USDC.<\/a><\/p>\n\n\n\n

Three Arrows Capital (3AC), a crypto hedge fund that owed Voyager 15,250 Bitcoin<\/strong> and $350 million USDC<\/strong>, defaulted and triggered Voyager Digital\u2019s bankruptcy.<\/p>\n\n\n\n

3AC filed for bankruptcy in June after heavily leveraged positions in the LUNA UST crash<\/a>. Hage said that efforts are ongoing to recover the debt from 3AC<\/p>\n\n\n\n

Another challenge for Voyager Digital is the litigation with FTX, a trading firm that lent $445.8 million<\/strong> to Voyager before FTX itself went bankrupt in November. <\/p>\n\n\n\n

FTX is suing Voyager for the return of the funds, which could affect the recovery prospects for Voyager\u2019s customers. This issue, according to Hage, is pending definitive resolution and will take time.<\/p>\n\n\n\n

Voyager Digital was one of several crypto lenders that boomed during the COVID-19 pandemic, offering high-interest rates and easy access to loans. <\/p>\n\n\n\n

However, the recent slump in crypto markets has hurt many lenders, such as Celsius Network<\/strong>, BlockFi<\/strong>, and Genesis Global Capital.<\/strong><\/p>\n\n\n\n

Voyager Digital said that it has more than $110 million<\/strong> in cash and owned crypto assets on hand and intends to continue operations while working on its turnaround strategy. <\/p>\n\n\n\n

It has hired Moelis & Company <\/strong>and The Consello Group<\/strong> as financial advisers, Kirkland & Ellis LLP<\/strong> as legal advisors, and Berkeley Research Group LLC<\/strong> as restructuring advisors.<\/p>\n","protected":false},"excerpt":{"rendered":"

Voyager Digital, a crypto lender that filed for Chapter 11 bankruptcy in July, has announced a plan to return some of its customers\u2019 assets. The company was hit hard by the collapse of its creditor, Three Arrows Capital, and a failed buyout attempt by Binance.US. According to Paul Hage, the bankruptcy plan administrator, Voyager Digital […]<\/p>\n","protected":false},"author":44,"featured_media":52169,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32],"tags":[1709,10893,197,778,5107],"class_list":["post-52167","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-exchange-news","tag-3ac","tag-bankruptcy","tag-defi","tag-ftx","tag-voyager-digital"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/06\/Voyager.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/52167","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=52167"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/52167\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/52169"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=52167"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=52167"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=52167"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}