Voyager News: Under the Recovery Plan,Voyager Can’t Say for Sure that All Customers Will Get their Crypto

Customers would be reimbursed according on the outcome of the reorganization and recovery of 3AC’s assets, according to the crypto lending firm.

It wasn’t clear whether Voyager Digital would be able to reimburse all of the money it had loaned out to its customers following the company’s bankruptcy filing on Tuesday.

With regard to the 15,250 Bitcoin (BTC) and 350 million USD Coin (USDC) loans the company failed to return, Voyager announced in a blog post on Monday that it has around $1.3 billion in affected users’ assets in addition to $650 million in “claims against Three Arrows Capital.” Voyager’s proposed recovery plan is subject to court approval, but if approved, users could get a combination of Voyager tokens, cryptocurrencies, “common shares in the newly reformed company,” and monies from any proceedings with Three Arrows Capital, often known as 3AC.

Restructuring and asset recovery at 3AC will have an impact on these metrics, according to the loan firm. Customer assets are preserved and the best potential for value maximization is provided by our restructuring plan, but it is subject to adjustment, negotiation, and eventually a vote.

Voyagers,

We understand how critical it is to get access to the value in your account and we are working through this process as quickly as possible to do just that. Today’s post provides an update on customer cash and crypto, and next steps: https://t.co/yBlVB0qgVp (1/6)

— Voyager (@investvoyager) July 11, 2022

Several Strategic Possibilities

Other than cryptocurrency, Voyager stated it was storing customer monies in a separate FDIC-insured account at the Metropolitan Commercial Bank of New York “equivalent to the total value of customer accounts.” The Federal Deposit Insurance Corporation (FDIC) protects customers up to $250,000 if the bank fails, but not the lending corporation. According to Voyager’s statement, the company is “reconciling and preventing fraudulent activity” in order to restore access to deposits in USD.

Voyager sent a default notice to 3AC on June 27 and later suspended trading, deposits, withdrawals, and loyalty awards because of 3AC’s refusal to pay. Alameda Research lent the loan firm 10,055 BTC (about $500 million at the time) to offset losses from 3AC, the firm claimed in a press release.

Voyager is also considering “several strategic possibilities to evaluate the worth of the solo company compared to a third-party investment or sale” in addition to the legal solutions it is seeking with 3AC’s repayment. An analysis of trading views shows that since its yearly high of $20.35 in November 2021, the company’s share price has declined by over 98% to just $0.27 as we go to press.