Most Recent Update 04/10/24: Voyager Digital has secured a combined total of $484.35 million from various sources. Further payments are expected to be made in the next few years as assets are sold and litigation recoveries are obtained. All uncashed Voyager checks will be cancelled and deemed unclaimed after Apr. 20, 2024.
The year 2022 witnessed a tumultuous period in the world of cryptocurrencies, leaving many investors in a state of uncertainty. Amidst this chaos, numerous lending services, including prominent platforms like Celsius, FTX and Voyager, experienced significant setbacks. As the dust settles, investors are left questioning whether they will ever recover their crypto investments from Voyager.
In the aftermath of their bankruptcy filing, Voyager Digital continues to work on recovering funds and stabilizing their financial position while facing other challenges such as security concerns and uncashed Voyager checks amounting to $17 million. Recently, Voyager announced a major milestone for the company, as they managed to secure a total of $484.35 million from various sources, including FTX, Three Arrows Capital (3AC) and Directors and Officers (D&O) insurance settlements. Furthermore, the company has set a deadline of Apr. 20, 2024 for cancellation of all outstanding checks to address logistical issues.
What Happened to Voyager Crypto Exchange?
Voyager was established in 2017 with a mission to provide a user-friendly platform for buying, selling and trading cryptocurrencies. The exchange gained popularity for offering commission-free trading and access to a wide range of digital assets.
In early 2021, Voyager experienced a significant surge in users and trading volume, which strained its infrastructure. This resulted in occasional technical glitches, delays in order execution and customer support challenges. While these issues affected user experience, Voyager continued to expand its offerings and improve its services to address the growing demand.
Voyager's bankruptcy filing sent shockwaves through the crypto industry as it revealed a default on loans amounting to 15,250 BTC and 350 million USDC by Three Arrows Capital in June 2022. Astonishingly, these uncollateralized loans represented more than half of Voyager's loan book, as stated in its public filing for Q1 2022. The significant concentration of risk with a single counterparty has raised serious concerns about the exchange's financial stability.
The bankruptcy filing emphasized that the majority of Voyager's 50 largest unsecured claims were from customers, ranging from approximately $9,771,026.39 to $955,417.27. These customers primarily consisted of retail investors, indicating that the impact of Voyager's bankruptcy extends beyond institutional entities.
How to Get Your Crypto Back from Voyager
To receive your initial crypto recovery in kind from Voyager, it is crucial that you transfer all of your available crypto assets from your Voyager account to a designated wallet address. This transfer can be made to another U.S.-based exchange or a self-custody wallet of your choice. It is important to complete this transfer within a 30-day window.
Failure to transfer your crypto assets in kind during this designated period will result in receiving your initial recovery in U.S. dollars at a later date, which is subject to market fluctuations.
Please take note that if you have a balance of any token that is lower than the required transfer fees, you will not be able to complete the transfer process. In such cases, the crypto assets with balances below the transfer fees will be sold at a later date, and you will receive payment in U.S. dollars.
This process ensures an efficient and seamless recovery of crypto assets for all users, with careful consideration given to token balances and associated transfer fees.
Creditors with any of the 67 "supported" tokens, including popular cryptocurrencies like Bitcoin (BTC) and Ether (ETH), will have the option to directly withdraw a percentage of their crypto holdings. However, for creditors holding any of the 38 "unsupported tokens," which include assets like Solana's SOL and Algorand's ALGO, Voyager will liquidate those holdings and offer repayment in the form of USD coin (USDC), a stablecoin. This strategic approach aims to ensure that all customers receive appropriate value for their assets, providing clarity and stability in the repayment process.
How Much Crypto Will I Get Back from Voyager?
Voyager Digital's repayment plan aims to return approximately 35% of customers' cryptocurrency deposits. The approved liquidation plan allows for the distribution of around $1.33 billion in crypto assets to customers. The specific amount of crypto that each individual will receive back depends on their initial deposit amount and the proportionate share allocated to them in the distribution process. It's important to note that the repayment amount may vary depending on factors such as the type of cryptocurrency deposited and any applicable deductions or fees.
Voyager announced that it will return approximately 35% of customers' cryptocurrency deposits. The approval of Voyager's liquidation plan allows for the distribution of around $1.33 billion in crypto assets to customers.
Voyager's bankruptcy filing, prompted by market volatility and a loan default by Three Arrows Capital, led to unsuccessful sales attempts. The ongoing litigation with FTX, aiming to recover $445.8 million in loan repayments, plays a significant role in determining customer recovery. According to court filings, if Voyager succeeds in the litigation, the expected recovery increases to 63.74%.
To facilitate repayments, Voyager intends to refund customers in the same cryptocurrency they held.
Will I Get Crypto Back from Unsupported Cryptocurrencies on Voyager?
Customers who deposited unsupported cryptocurrencies on Voyager may not receive those specific cryptocurrencies back as part of the repayment process. Instead, Voyager plans to refund customers in the stablecoin USDC for unsupported cryptocurrencies and Voyager's proprietary VGX token deposits. This ensures that customers still receive the equivalent value of their deposits, albeit in a different form.
What Crypto Accounts Can I Send My Voyager Funds to?
You have the flexibility to send your Voyager funds to various crypto accounts based on your preferences and needs. Some common options include:
- Another crypto exchange: You can transfer your Voyager funds to another crypto exchange of your choice. Make sure the exchange supports the specific cryptocurrencies you wish to transfer.
- Self-custody wallet: You can transfer your funds to a self-custody wallet, which provides you with complete control over your private keys and enhances security. Hardware wallets, such as Ledger or Trezor, or software wallets like MetaMask or Trust Wallet, are popular choices.
- Cold storage wallet: For maximum security, you can opt for cold storage wallets, which are offline devices or paper wallets specifically designed to store cryptocurrencies securely. Examples include hardware wallets or offline-generated paper wallets.
It's important to consider factors such as security, convenience and the specific cryptocurrencies supported when selecting the destination for your Voyager funds. Ensure that you are comfortable and well-informed about the chosen platform or wallet before initiating any transfers.