Following approval of the bankruptcy judge, cryptocurrency brokerage firm Voyager plans to return $270 million in customer cash. The amount represents a small portion of investors’ crypto holding that have been locked up since the company filed for bankruptcy in April.
Judge Michael Wiles, who is overseeing the bankruptcy case, approved the proposal to restore access to cash held for the benefit of Voyager’s customers at Metropolitan Commercial Bank. He ruled that the company provided “sufficient basis” to support its request and anticipates customers will receive their funds in about 5-10 business days after making their requests.
Once cash withdrawals are enabled, Voyager customers can withdraw up to $100K in cash via an automated clearing house (ACH) transfer in a 24-hour period.
The news comes barely a week after lawyers representing Voyager Digital have described a joint proposal to bail out the bankrupt crypto lender from FTX and Alameda as a “low-ball bid dressed up as a white knight rescue.”
Voyager has been thrown a lifeline from crypto billionaire Sam Bankman-Fried, offering to provide its customers with early-access liquidity. Under the proposed restructuring deal, West Realm Shires — owner and operator of FTX US and Alameda Ventures — would buy all of Voyager’s crypto assets and loans in cash at market value, except the loans to bankrupt crypto hedge fundThree Arrows Capital.
If approved, Voyager customers would be able to claim a portion of their funds that were frozen earlier last month. Meanwhile, FTX would offer customers an option to receive their share of claims by opening a new account at FTX.
In response, Voyager’s bankruptcy lawyers have entered a public spat with Sam-Bankman Fried whose offer was described by them as harmful, highly misleading and only benefits FTX.
Earlier in June,Voyager Digital entered into an agreement with Alameda Ventures to extend a previous credit facility, which was intended to help it meet customer liquidity needs. Bankman-Fried-led Alamada Research offered to extend a credit line of $200 million in cash and USDC alongside a 15,000 BTC revolver.
In addition to this facility, Voyager has approximately $152 million cash and owned crypto assets on hand, as well as $20 million of cash that is restricted for the purchase of USDC. The TSX-listed firm also issued 3AC a formal notice of default to recover roughly $660 million allegedly loaned to the Singapore-based hedge fund.
FAQs
Voyager has also created an Official Committee of Unsecured Creditors (UCC) last month. “Once cash withdrawals are enabled, customers can request withdrawals of up to $100,000 via ACH in a 24-hour period,” Voyager's blog post concludes.
How much can you withdraw from Voyager? ›
Crypto broker Voyager Digital lowers daily withdrawal limits to $10,000. June 23 (Reuters) - Crypto broker Voyager Digital Ltd has lowered its daily withdrawal limits to $10,000 from $25,000, according to an update on the company's website.
Will voyager customers get money back? ›
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.
Does Voyager charge withdrawal fees? ›
Voyager also charges dynamic withdrawal fees which can get pricey. For example, previous withdrawal fees have included 0.0005 BTC and 35 USDC. That's like paying $30 to $35 to take money out of an ATM.
Can I transfer my crypto out of Voyager? ›
Back in your Voyager account, look for the “Withdraw” or “Send” option for the chosen cryptocurrency. Enter your Coinbase wallet address generated in Step 4, specify the amount you want to transfer, and review the transaction details carefully. Double-check all the information and confirm the transfer.
How much cash does Voyager have? ›
Voyager currently has approximately $1.3 billion in crypto assets on the platform, $104 million in cash, and a claim against the now defunct 3AC for around $650 million. Creditor claims total $1.8 billion so far.
Is my money in Voyager safe? ›
Unlike traditional banks, cryptocurrency platforms like Voyager are not covered by the Federal Deposit Insurance Corporation (FDIC). This typically means that if the platform goes bankrupt, customers may lose their digital assets.
Is money in Voyager insured? ›
USD held with Voyager is FDIC insured up to $250K. Our customers' security is our top priority.” The FTC says Voyager doubled down on those representations in correspondence with consumers.
Is Voyager crypto still active? ›
The Federal Trade Commission announced a settlement with bankrupt crypto company Voyager that will permanently ban it from handling consumers' assets and is filing suit against its former CEO, Stephen Ehrlich, for falsely claiming that customers' accounts were insured by the Federal Deposit Insurance Corporation (FDIC) ...
How much will Voyager customers recover? ›
As of May 2023, a restructuring plan proposed having Voyager customers recover 35.7% of their claims in cryptocurrency or cash. The crypto exchange settled with the FTC for $1.65 billion in monetary relief in November 2023.
Voyager has about $630 million to repay around $1.8 billion in customer claims, according to a May 5 court filing. Customers have the option of taking their repayment in crypto or U.S. dollars.
How to sue voyager digitally? ›
If you invested with Voyager Digital and were adversely affected, you might be eligible to join or file a class action claim. Contact us today at 305-740-1423 for a FREE CASE REVIEW with one of our experienced attorneys.
Are people suing Voyager? ›
The New Jersey-based law firm gave a “bogus legal opinion” that Voyager's native VGX token was not an unregistered security, investors allege in a lawsuit filed Feb. 6 in Miami. The opinion played an integral role in a fraud that led to over $4 billion in investor losses, the suit claims.
Does Voyager report to the IRS? ›
Yes. If you've made more than $600 on Voyager, you may receive a 1099-MISC form from Voyager. Remember, whenever you get a 1099 form from Voyager or any other crypto exchange - the IRS gets an identical copy.
When did Voyager freeze accounts? ›
Voyager users have been unable to access their cryptocurrencies since July 1, when the meltdown in digital assets forced the company to suspend trading, deposits and withdrawals.
Is Voyager app set to reopen for customer withdrawals as soon as June 20? ›
Voyager's bankruptcy plan administrator Paul Hage said in a June 14 court filing that around June 15 the Voyager app would be updated to show the amount available for withdrawal, and estimated that the withdrawal period would start somewhere between June 20 and July 5.
Where to transfer crypto from Voyager? ›
- Yes, you can transfer cryptocurrencies from Voyager to Coinbase. ...
- Log in to your Voyager account and navigate to the "Withdraw" page for the cryptocurrency you want to transfer.
- Enter the amount of cryptocurrency you want to transfer and the address of your Coinbase wallet.
- Navigate to the Crypto's Detail Page: Access your Robinhood account and locate the specific cryptocurrency you wish to transfer. ...
- Select "Receive": On the crypto's detail page, find and select the "Receive" option. ...
- Copy Your Crypto Address: ...
- Paste the Address into the Receiving Wallet App:
Completing the Chapter 11 plan that the bankruptcy court approved in March 2023, Voyager issued approximately 627,000 checks worth $131 million for the initial distribution to creditors. So far, only 353,000 of the checks, with an aggregate value of $112 million, have been deposited.
