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Voyager Digital Goes Bankrupt

ozcopper

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Dear Bankless Nation,

Welcome to the weekly recap of the biggest crypto news for the first week of July.

Voyager Digital Goes Bankrupt

?The company is well capitalized and in a good position to weather this market cycle and protect customer assets.? ? Voyager Digital press release, June 14th 2022.

That did not age well.

CeFi firm Voyager Digital filed for bankruptcy this week.

The publicly traded crypto bank got caught up making huge uncollateralized loans of $660M to ?too-big-to-fail? crypto hedge fund 3AC, which was in turn making its own leveraged risky trades all over the place.

Voyager customers were in effect lending to 3AC in a game of musical chairs, and the music came to a screeching default halt to the tune of 15250 BTC and 350M USDC.

Now, Voyager has a remaining $110M in assets on hand, plus $1.3B in assets.

The bankruptcy filing means that Voyager customers will likely not receive their assets back in full.

Here?s the company?s rough plan to make customers ?whole?:

Voyager customers will receive a combination of some cryptoassets, a share of Voyager?s $660M claim against 3AC (now also bankrupt btw), a bunch of VGX ?loyalty? tokens for ?boosting rewards'' on crypto deposits, and VOYG shares ? upon which trading has been halted on the Toronto Stock Exchange.

Something tells me Voyager users won?t be overly keen on receiving shares of a sunken ship.
Here?s how the rest of the pieces in the 3AC pandemic contagion puzzle lay:

    3AC has filed for Chapter 15 bankruptcy in a New York court in a bid to protects its remaining assets from a legal grab

    Nexo is making moves to acquire the Coinbase-backed Vauld, another struggling crypto lender that halted withdrawals last week

    Facing $80M in losses from its 3AC loan, FTX acquires BlockFi this week for $240M. Its valuation at its peak was ~$4B+. (oof)

    Genesis Trading is facing hundreds of millions of dollars in losses from its exposure to 3AC.

    Finally, Celsius has completely paid down its WBTC loan on its Maker vault and gotten all its collateral ($440M) back.

More here: https://newsletter.banklesshq.com/p/voyager-aave-gho-facebook-reddit
 
https://www.tiktok.com/@alzerv/video/7115939553852034310?is_from_webapp=1&sender_device=pc&web_id=6921171219819644418
 
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