Voyager Digital Witnesses Massive Outflow as Creditors Withdraw Over $250M in Funds

Voyager Digital, a crypto lender that recently resumed withdrawals after a year-long suspension, is now facing a significant outflow of funds as creditors rush to withdraw their money.

The platform, which filed for Chapter 11 bankruptcy last year, has seen an exodus of over $250 million worth of crypto assets since the resumption of withdrawals.

After a prolonged suspension and a bankruptcy filing, Voyager Digital recently gave its investors the green light to begin withdrawing funds from the platform.

Since the resumption of withdrawals, over $250 million worth of crypto assets have been withdrawn from the Voyager Digital platform, according to data from Dune Analytics.

Voyager Digital’s financial downfall can be attributed to the collapse of the Terra ecosystem, which resulted in substantial losses for investors and a liquidity crisis for the crypto-lending firm.

Following court approval, Voyager Digital initiated a bankruptcy plan that entitles customers to receive 35.72% of their claims as an initial payout. However, the distribution process faces complexities and delays.

Creditors may have access to an additional $445 million of customer funds, but this depends on the resolution of Alameda Research’s preference claim against Voyager, which is expected to take time.

While allowing withdrawals, Voyager is actively engaged in asset recovery to repay creditors. The platform currently holds $176 million worth of crypto assets, with BTC and ETH comprising the majority.

Creditors face a lengthy and challenging process to recover their funds, with substantial legal fees incurred during bankruptcy proceedings.

The attempted acquisition by Binance was also halted due to ongoing legal actions and concerns surrounding Binance.