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Voyager Digital Sees Significant Asset Withdrawals Exceeding $250M

Published 10/07/2023, 13:41
Updated 10/07/2023, 13:45
© Reuters.  Voyager Digital Sees Significant Asset Withdrawals Exceeding $250M

  • More than $250 million have been withdrawn from Voyager Digital after a year-long suspension.
  • The crypto broker’s balance has now been reduced to $176.38 million.
  • Voyager’s Clean Asset ratio is currently at 96.15%, which includes various tokens such as BTC, ETH, USDC, and SHIB.

Crypto broker Voyager Digital is witnessing a significant outflow of funds, with withdrawals resuming after a year-long suspension. Creditors are swiftly moving to retrieve their money, resulting in a massive outflow exceeding $250 million.

Having filed for Chapter 11 bankruptcy and halting investor withdrawals, Voyager Digital, a struggling crypto lender, recently reopened its withdrawal services on June 23. The platform’s balance, which stood at $426.8 million when withdrawals resumed, has now reduced to $176.38 million. Notably, numerous transactions exceeding $1 million have taken place.

Voyager Average Balance Over Time (Source: Dune Analytics)

Data from Dune Analytics reveals that more than $250 million worth of crypto assets have been withdrawn from Voyager. Presently, the platform retains approximately $176 million worth of crypto assets, demonstrating a Clean Asset ratio of 96.15%. This figure includes $69 million in BTC, $50.99 million in ETH, $18.56 million in USDC, $15.7 million in SHIB, and several other tokens.

Earlier in May, U.S. Bankruptcy Judge Michael Wiles granted approval to Voyager’s proposed liquidation plan. This enabled the firm to return approximately $1.33 billion in crypto assets to its customers and signified the conclusion of its reorganization efforts under Chapter 11.

Under this bankruptcy plan, customers are expected to recover 35.72% of their deposits. Following the distribution of these initial funds, Voyager will continue seeking additional assets for further creditor payouts.

Voyager’s announcement on May 8 revealed, “Depending upon the resolution of the FTX/Alameda preference claim dispute, the success of any additional claims brought by the Voyager Plan Administrator against third parties, as well as any recovery by the Voyager estate as a creditor in the Three Arrows Capital liquidation, customers may receive additional recoveries in the future.”

Since filing for bankruptcy protection in July 2022, citing market volatility, Voyager Digital has faced a tumultuous journey. Notably, two unsuccessful attempts to sell its assets to Binance US and FTX had the platform continue to grapple with financial challenges.

The post Voyager Digital Sees Significant Asset Withdrawals Exceeding $250M appeared first on Coin Edition.

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