Some Voyager Digital account holders were being surprised when they identified that their deposits did not have the defense they assumed they did just after the crypto brokerage and loan provider filed for individual bankruptcy Tuesday. This could mean supplemental consequences for Voyager Electronic.
Voyager Electronic submitted for bankruptcy less than Chapter 11, citing money owed of up to $10 billion to 100,000 lenders in a crisis brought on following Singaporean hedge fund A few Arrows Money (3AC) defaulted on a mortgage of 15,250 Bitcoin (BTC) and 350 million USD Coin (USDC) a week before.
In accordance to Voyager Digital’s site, “Your USD is held by our banking lover, Metropolitan Business Bank, which is FDIC insured, so the funds you hold with Voyager is protected.” The lender holds $350 million in Voyager Digital customers’ deposits.
The United States Federal Deposit Coverage Company (FDIC) insures accounts for up to $250,000 for each depositor in scenario of the failure of the lender, the Metropolitan Business Financial institution explained in a statement, introducing that the FDIC does not supply security versus Voyager Digital’s failure or against the loss of cryptocurrency.
— Frances Schadenfreude Cassandra (@Frances_Coppola) July 2, 2022
In accordance to The Wall Avenue Journal on Thursday, unnamed resources claimed Voyager Digital depositors were being anticipated to get all the income from their accounts held in the bank ultimately, as Voyager Electronic promised. A source also instructed the newspaper that the FDIC was looking into Voyager Digital’s promoting.
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Voyager Electronic explained its proposed reorganization strategy foresaw that, subject to a variety of contingencies, “customers with crypto in their account(s) will obtain in trade a mix of the crypto in their account(s), proceeds from the 3AC recovery, popular shares in the freshly reorganized Firm, and Voyager tokens.”
Two most exciting matters in the Voyager bankruptcy petition:
(1) Voyager’s next greatest publicity is to Alameda Analysis. So there is some recycled capital. Voyager loans Alameda $377M, & Alameda reloans Voyager $75M. Additionally Alameda is Voyager’s biggest shareholder (9.5%). 1/
— Adam Levitin (@AdamLevitin) July 6, 2022
It was also noticed that Voyager Digital experienced a complex economical romantic relationship with Alameda Study, which is backed by Sam Bankman-Fried. Alameda Study is concurrently Voyager Digital’s largest shareholder and next-major creditor at $377 million, owing Voyager Digital $75 million.