Will I get my virtual currency back from Voyager?

Latest Update 04/10/24: Voyager Digital has secured a total of $484.35 million from various sources. Further payments are expected in the coming years as assets are sold and litigation recoveries are obtained. All uncashed Voyager checks will be canceled and considered unclaimed after April 20, 2024.

In 2022, the world of cryptocurrencies entered a period of turbulence, and many investors fell into a state of anxiety. Amid this turmoil, numerous lending services suffered major setbacks, including prominent platforms such as Celsius, FTX, and Voyager. As the issue subsides, investors are questioning whether they will be able to recover their crypto investments from Voyager.

In the aftermath of the bankruptcy filing, Voyager Digital continues to work to recover funds and stabilize its financial position, but is faced with other challenges, including security concerns and $17 million worth of uncashed Voyager checks. is also facing. Recently, Voyager was able 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, marking a major milestone for the company. announced that it had been achieved. Additionally, the company has set a deadline of April 20, 2024, to cancel all outstanding checks to address logistical issues.

What happened to Voyager Crypto Exchange?

Voyager was founded in 2017 with a mission to provide a user-friendly platform for buying, selling, and trading cryptocurrencies. The exchange gained popularity by offering commission-free trading and access to a wide range of digital assets.

In early 2021, Voyager experienced a significant spike in users and transaction volume, putting a strain on its infrastructure. This resulted in occasional technical glitches, delays in order execution, and customer support issues. Although these issues impacted the user experience, Voyager continued to expand its offerings and improve its services to meet growing demand.

Voyager’s bankruptcy filing shocked the crypto industry by disclosing a default on a loan by Three Arrows Capital worth 15,250 BTC and 350 million USDC in June 2022. Astonishingly, these unsecured loans accounted for more than half of Voyager's loan book, the report said. The significant concentration of risk by a single counterparty raises serious concerns about the financial stability of exchanges.

The bankruptcy filing highlighted that the majority of Voyager's 50 largest unsecured claims are from customers, ranging from approximately $9,771,026.39 to $955,417.27. These customers are primarily made up of retail investors, showing that the impact of Voyager's bankruptcy extends beyond institutional investors.

How to get your crypto back from Voyager

To receive your first crypto recovery in-kind from Voyager, it is important to transfer all available crypto assets from your Voyager account to your designated wallet address. This transfer can be made to another US-based exchange or a self-custodial wallet of your choice. It is important that this transfer be completed within 30 days.

If you are unable to remit your crypto assets in-kind within this specified period, you will receive the first collection amount in USD at a later date, which is subject to market fluctuations.

Please note that if you have less token balance than the required remittance fee, you will not be able to complete the remittance procedure. In this case, any crypto assets whose balance is below the transfer fee will be sold at a later date and you will receive payment in USD.

This process carefully considers token balances and associated transfer fees, ensuring efficient and seamless recovery of crypto assets for all users.

Creditors holding any of 67 “supported” tokens, including popular cryptocurrencies such as 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,” including assets such as Solana's SOL and Algorand's ALGO, Voyager will liquidate those holdings and provide stablecoins. We plan to provide repayments in the form of USD Coin (USDC). This strategic approach aims to ensure all customers receive appropriate value for their assets and provide clarity and stability in the repayment process.

How much cryptocurrency will I get back from Voyager?

Voyager Digital's repayment plan aims to repay approximately 35% of customers' crypto deposits. The approved liquidation plan will enable approximately $1.33 billion in crypto assets to be distributed to customers. The specific amount of virtual currency each individual receives will depend on the initial deposit amount and the pro rata share allocated during the distribution process. It is important to note that repayment amounts may vary depending on factors such as the type of cryptocurrency deposited and applicable deductions and fees.

Voyager announced that it will return approximately 35% of its customers' crypto deposits. Approval of Voyager's liquidation plan will enable it to distribute approximately $1.33 billion in crypto assets to customers.

Voyager's bankruptcy filing, triggered by market volatility and a loan default by Three Arrows Capital, resulted in a failed sale attempt. The ongoing lawsuit with FTX, which aims to recover $445.8 million in loan repayments, will play a key role in determining recovery for customers. If Voyager wins the lawsuit, the expected recovery rate would increase to 63.74%, according to court filings.

To facilitate repayments, Voyager plans to refund customers in the same cryptocurrency they held.

Can I get my crypto back from cryptocurrencies that are not supported by Voyager?

Customers who deposit unsupported cryptocurrencies with Voyager may not receive those specific cryptocurrencies as part of the repayment process. Instead, Voyager plans to refund customers in stablecoin USDC for unsupported cryptocurrencies and Voyager's own VGX token deposits. This ensures that customers receive the same value as their deposit, albeit in a different format.

Which crypto accounts can I send Voyager funds to?

You have the flexibility to transfer Voyager funds to different crypto accounts based on your preferences and needs. Common options include:

• Another cryptocurrency exchange: You can transfer your Voyager funds to another cryptocurrency exchange of your choice. Make sure the exchange supports the specific cryptocurrency you want to transfer.
• Self-custodial wallet: Transferring your funds to a self-custodial wallet gives you full control over your private keys and provides added security. Hardware wallets like Ledger and Trezor, or software wallets like MetaMask and Trust Wallet are popular choices.
• Cold storage wallet: For maximum security, you can choose a cold storage wallet, which is an offline device or paper wallet specifically designed to safely store your cryptocurrencies. Examples include hardware wallets and offline-generated paper wallets.

When choosing where to send your Voyager funds, it's important to consider factors such as security, convenience, and the specific cryptocurrencies supported. Before you start sending money, make sure you are knowledgeable and comfortable with your chosen platform or wallet.