Investors lament potential loss of ‘millions’ on Voyager bankruptcy
Many investors are reeling from Voyager Digital’s recent bankruptcy filing, with some claiming to have either millions in crypto assets or most of their savings tied up on the crypto exchange.
As previously reported, Voyager suspended withdrawals earlier this month amid its liquidity problems following Three Arrows Capital’s (3AC) default on a $650 million loan from the company. Although Alameda provided the company with a $500 million loan in June, Voyager filed for bankruptcy on July 6.
In a July 9 article, Fortune spoke to several Voyager users who are reeling from the recent bankruptcy filing. Some have put almost all of their life savings on the platform, while others are said to have millions hanging in limbo.
One user, called Robert for the purpose of anonymity, said he put around six figures on the platform, which represents 70% of his savings.
“Every day, honestly, I cry,” Robert said, adding, “I don’t know what to say to my wife. As partners, we decided to [invest on Voyager]but she trusted me, more than anyone, to make the right decision.
As an investor of six years, Robert went on to note that while he had conducted a relative amount of research on Voyager before using the platform, he never would have done so if he had known that the company was going to lend funds to a client. hedge funds:
“I had no idea that Voyager would lend [customers’ USDC] to a hedge fund. If I had known it might be loaned out, I probably would have kept it in cash in my safe.
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Fortune also spoke with popular crypto influencer Scott Melker, who is also known as The Wolf Of All Streets online and claims to have seven figures of funds blocked on Voyager.
“Look, I’m missing millions,” he said, adding that he was embarrassed to be overexposed to Voyager despite often talking about managing risk and protecting your assets.
Melker has approximately 851,000 followers on Twitter and 121,000 subscribers on YouTube. He said that while he stood to lose a lot on Voyager, he felt worse for having previously promoted the platform to his audience, friends and family.
“I understand that people make their own decisions, but they wouldn’t even have thought about it if I hadn’t brought [Voyager] to their attention. And, frankly, that’s worse than losing my own money.
As part of Voyager’s bankruptcy process, company executives have announced plans to first reorganize the company into a new entity and then reimburse users through a combination of crypto, the proceeds of the recovery of Three Arrows Capital (3AC), Voyager tokens and common stock of the newly reorganized company.
However, it is unclear whether this will result in full compensation for all users.