Just last month, the bankrupt crypto lender, Voyager Digital, allowed its investors to start withdrawals almost a year after its Chapter 11 Bankruptcy filing. As per the data shared by Dune Analytics, investors have withdrawn a staggering amount of $250 million since withdrawals were resumed. As of now, the platform holds cryptocurrencies worth $176 million, along with a Clean Asset Ratio of a whopping 96.15%. This includes various assets such as 2,287 BTC, 27,363 ETH, 18,558 USDC, 2060 trillion SHIB, and more.
The situation took a turn for the worse for Voyager Digital following the collapse of the Terra ecosystem, which resulted in the loss of customer funds worth $40 billion. Just like most crypto firms at that time, Voyager faced a severe liquidity crisis as a result of massive withdrawals. The extent of these issues, later on, set the stage for the firm to slip into bankruptcy.
The Withdrawal Plan of Voyager Digital
Despite the major setback, Voyager Digital presented a bankruptcy plan that specified how customers would receive 35.72% of their claims initially. Furthermore, these customers had the option of either withdrawing the set amount as cryptocurrency via the Voyager Digital application or as cash by waiting for almost 30 days.
Not too long ago, Voyager Digital transferred approximately 255 million SHIB tokens to a total of six untagged wallets. Based on this action, several analysts have concluded that the main reason for doing so comes from the firm’s bankruptcy plan.
The first filing would enable customers to access 35% of their funds, but the main aim is to recover more assets to distribute to creditors as soon as the initial distribution is over. However, an additional sum of $445 million would be made available to creditors, but that would depend purely on the resolution of Alameda’s preference claim against Voyager. It is expected that the resolution might happen somewhere in the middle of September this year.
Previously, Binance expressed a desire of buying Voyager Digital for a sum of $1 billion, but the deal came to an abrupt fallout following the intervention of the SEC and the Department of Justice as a result of their investigation against the largest crypto exchange. Nonetheless, the resumption of withdrawals has offered a sigh of relief to countless customers as their funds were stuck for almost a year. But it is yet to be seen if the platform can follow its plan and rise from the ashes.
