Voyager_Digital

Voyager Digital

Voyager Digital

Liquidated cryptocurrency hedge fund

Voyager Digital was a cryptocurrency brokerage company.[when?]

Quick Facts Company type, Industry ...

History

In June 2022, Voyager Digital announced that Three Arrows Capital had not repaid loans totaling $666 Million.[1]

On July 1, the company suspended “trading, deposits, withdrawals and loyalty rewards”[2] and subsequently on July 5, the company filed for Chapter 11 bankruptcy protection.[3]

Later in July, the Federal Reserve and the FDIC in a joint letter ordered the company to cease and desist from making false and misleading statements.[4]

In August, the company received approval from a judge to return $270 million in customer cash, which was locked up after the company’s bankruptcy filing in July. The money accounted for only a small portion of total investor funds.[5]

In September, Binance and FTX both made nearly $50 million bids for the company.[6] FTX would win the auction with a nearly $50 million bid.[7][8] In November, FTX filed for bankruptcy and Voyager Digital had to find a new buyer.[9] A major investor in Voyager said that the collapse of FTX puts into jeopardy the company's bailout, with $1.3 billion of investor assets threatened.[10] Following the bankruptcy of FTX, the US subsidiary of Binance won the bid to buy the assets of Voyager for approximately $1 billion in December 2022.[11] The U.S. Securities and Exchange Commission (SEC) has filed a limited objection to Binance US's proposed $1 billion acquisition of bankrupt cryptocurrency lender Voyager Digital, a bankruptcy court filing showed in January 2023.[citation needed]

References

  1. [1]
    Huang, Vicky Ge (22 June 2022). "Crypto Broker Voyager Digital Says Three Arrows Capital Hasn't Repaid $666 Million in Loans". Wall Street Journal. Retrieved 15 March 2023.
  2. [2]
    Huang, Vicky Ge (1 July 2022). "Crypto Broker Voyager Digital Suspends Withdrawals". Wall Street Journal. Retrieved 15 March 2023.
  3. [3]
    Brown, Eliot; Wang, Yifan (6 July 2022). "Crypto Broker Voyager Digital Files for Bankruptcy Protection". Wall Street Journal. Retrieved 15 March 2023.
  4. [4]
    Ackerman, Andrew (28 July 2022). "Bankrupt Crypto Brokerage Voyager Ordered to Cease False Promises About U.S. Banking Insurance". Wall Street Journal.
  5. [5]
    Biswas, Soma (5 August 2022). "Voyager Digital Is Cleared to Return $270 Million to Customers". Wall Street Journal – via www.wsj.com.
  6. [6]
    Vigna, Paul (20 September 2022). "Binance and FTX Make Top Bids for Bankrupt Lender Voyager". Wall Street Journal.
  7. [7]
    Sebastian, Dave; Huang, Vicky Ge (27 September 2022). "FTX Wins Auction for Bankrupt Crypto Broker Voyager Digital's Assets". Wall Street Journal.
  8. [8]
    "Crypto Firm Voyager Digital's Bankruptcy Plan Gets Court Hearing This Afternoon". WSJ.
  9. [9]
    Biswas, Soma (12 November 2022). "Bankrupt Voyager Digital Looks for New Buyer After FTX Goes Under". Wall Street Journal – via www.wsj.com.
  10. [10]
    Joyner, April. "A Voyager investor says the FTX meltdown puts the bankrupt crypto lender's bailout in jeopardy, with $1.3 billion of customer assets on the line". Business Insider.
  11. [11]
    Ge Huang, Vicky; Ostroff, Caitlin (19 December 2022). "Binance.US to Buy Assets of Bankrupt Crypto Lender Voyager, Eyes More Acquisitions". The Wall Street Journal.

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