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The bankrupt cryptocurrency lender Voyager is actively working to reimburse its clients following considerable losses. At one point, Voyager managed nearly $413 million in crypto assets, but since allowing withdrawals on June 23rd, the company has experienced a continuous outflow of funds, leading to a 39.46% reduction in its crypto portfolio. Current figures indicate that Voyager now possesses $176.38 million in crypto, with customers expected to recover around 36% of their cryptocurrency deposits. Let’s explore the specifics of Voyager’s circumstances and its journey towards customer restitution.
Decreased Crypto Portfolio and Present Holdings:
After the introduction of withdrawal options, Voyager has seen a consistent outflow of funds, resulting in a contraction of its crypto portfolio. At present, the firm holds $176.38 million in crypto assets, which includes $69.02 million in Bitcoin, $50.99 million in Ether, $18.56 million in USDC, $15.70 million in SHIB, and $2.46 million in MATIC, among other holdings. The company’s Clean Asset ratio, excluding its native token VGX, is at 96.15%, and it has a stablecoin balance of nearly $19 million.
Liquidation Plan Approval:
In May of this year, U.S. Bankruptcy Judge Michael Wiles sanctioned Voyager’s proposed liquidation plan. This ruling allowed the company to reimburse its customers with approximately $1.33 billion in crypto assets and concluded its attempts to reorganize under Chapter 11 bankruptcy. Consequently, customers can anticipate recovering about 36% of their cryptocurrency deposits.
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Gemini’s Involvement in Customer Recovery:
In a recent update, Gemini has declared its role in aiding withdrawals for those affected by the Voyager bankruptcy situation. This initiative offers an additional pathway for impacted customers to reclaim their assets. The participation of well-known exchanges like Gemini is likely to enhance customer confidence and provide a dependable process for asset recovery.
Consequences of Three Arrows Capital and Unsuccessful Recovery Agreements:
Voyager’s financial troubles can be linked to the downfall of Three Arrows Capital (3AC), a cryptocurrency hedge fund led by Zhu Su, which defaulted on a $665 million loan from Voyager. This incident had a profound impact on Voyager’s financial health. Despite later attempts to negotiate recovery agreements with FTX and Binance, both efforts were unsuccessful, worsening Voyager’s financial challenges.
Voyager, the insolvent crypto lender, is progressively striving to reimburse its clients amid difficult conditions. Despite facing substantial losses and a decrease in its crypto portfolio, Voyager currently holds $176.38 million in crypto assets. Customers can look forward to recovering approximately 36% of their cryptocurrency deposits, and Gemini’s role in facilitating withdrawals presents a favorable outlook for customer recovery initiatives. While Voyager’s financial challenges have been significant, these recent developments provide hope for affected customers aiming to retrieve their assets.
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