In the turbulent world of cryptocurrency, a phoenix appears to rise from the ashes: Voyager Digital, a formerly bankrupt crypto lender has witnessed an outflow of over $250 million since reinstating its withdrawal process on June 23rd. This comes a year after the platform filed Chapter 11 and fully stopped withdrawals. Current data courtesy of Dune Analytics sets the platform’s total holdings at a notable $176 million in various cryptocurrencies. Additionally, the beleaguered lender sports a Clean Asset ratio of impressive 96.15%, while conveniently sidelining its native token, VGX.
Despite the apparent resilience of Voyager Digital, it is not without its share of complications. Earlier in May, Judge Michael Wiles greenlit Voyager’s liquidation plan during the U.S. Bankruptcy proceedings. This approval promised a partial recovery of lost assets for the platform’s users, estimating a return of about 35% for each customer. Consequently, customers were given an option to either withdraw their crypto via the Voyager app or wait patiently for cash redemption after a 30-day period.
While stripping down to its skeleton to satisfy customer withdrawals, Voyager maintains scrutiny towards its own debtors. Specifically, the now-defunct Three Arrows Capital stands out, owing a whopping $665 million to Voyager. This ambitious plan saw Voyager making multiple unsuccessful attempts to sell off its assets. An agreement nearly took shape withFTX offering a sum of $1.42 billion but ended in smoke with the exchange’s infamous implosion in November. A similar offer of $1.3 billion came from Binance.US, but an unpredictable regulatory climate led to a retraction of the deal.
Simultaneously, Voyager Digital finds itself entrenched in a lawsuit with FTX, seeking repayment of a massive $445 million in loans handed out before FTX’s bankruptcy. Regrettably, a resolution to this litigious issue doesn’t appear to be on the horizon until a minimum of September this year.
As Voyager Digital grapples with its current issues, its story underscores the precarious balance between risk and reward in the crypto lending space.
Source: Cryptonews
