Home Altcoins News Voyager Digital Resumes Crypto Withdrawals, Eases Investor Worries

Voyager Digital Resumes Crypto Withdrawals, Eases Investor Worries

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In an exciting turn of events for cryptocurrency investors, Voyager Digital, a well-known crypto lender, has recently reopened its withdrawal service, providing users with the long-awaited opportunity to access their funds once again. After nearly a year of halted withdrawals and a bankruptcy filing, the platform has witnessed an impressive outflow of over $250 million worth of cryptocurrencies since June 23, bringing hope and relief to its investor community.

The halt on withdrawals and subsequent bankruptcy of Voyager Digital came as a result of the Terra ecosystem’s collapse, which eroded over $40 billion of investors’ funds. The liquidity crisis faced by the crypto lender led to a prolonged period of suspended withdrawals, causing considerable distress among users. However, the reopening of the withdrawal service marks a significant step towards the platform’s recovery and the potential restoration of investor confidence.

Under the approved bankruptcy plan, Voyager customers will initially receive 35.72% of their claims. These funds can be withdrawn either as cryptocurrency via the Voyager app or as cash after a 30-day waiting period. This initial distribution aims to address the immediate needs of investors, offering them a portion of their invested assets to mitigate the financial impact they have endured during the suspension period.

While the first round of withdrawals will provide partial relief, Voyager’s primary focus remains on recovering additional assets to distribute among creditors once this initial distribution concludes. Notably, the bankruptcy has left Voyager Digital with a substantial debt owed by Three Arrows Capital, a bankrupt crypto hedge fund, amounting to $650 million. The resolution of this outstanding debt, along with the potential recovery of another $445 million in customer funds, hinges on the resolution of Alameda Research’s preference claim against Voyager. However, this resolution is not expected until at least mid-September 2023.

Voyager Digital had previously garnered attention when Binance expressed interest in acquiring the platform for a hefty sum of $1 billion. However, the proposed deal was halted by US government agencies, including the Securities and Exchange Commission and the Department of Justice, due to ongoing legal actions against Binance. Despite this setback, Voyager’s recent reopening of withdrawals brings a glimmer of hope to investors who have patiently awaited the return of their funds for over a year.

The resumption of withdrawals signifies a positive turning point for Voyager Digital and its user base, who can finally regain control over their invested cryptocurrencies. The ability to access over $250 million worth of assets since the withdrawal service’s revival has provided a much-needed sense of relief and satisfaction. This development also underscores the importance of responsible financial management in the crypto industry, as investors look forward to the recovery of additional assets and a potential return to normalcy.

In the ever-evolving world of cryptocurrencies, Voyager Digital’s recent decision to resume crypto withdrawals has sparked a sense of newfound hope and relief among its investors. After a prolonged period of halted withdrawals and a bankruptcy filing, the platform’s reopening has unleashed a significant outflow of over $250 million worth of cryptocurrencies since June 23. This surge in withdrawals not only highlights the pent-up demand for access to funds but also serves as a powerful reminder of the paramount importance of financial stability within the crypto lending sector.

In conclusion, Voyager Digital’s decision to resume crypto withdrawals has brought newfound hope and relief to its investors. The significant outflow of over $250 million worth of cryptocurrencies since June 23 demonstrates the pent-up demand for access to funds and reaffirms the importance of financial stability in the crypto lending sector. As the platform continues its recovery efforts and seeks to resolve outstanding debts, investors eagerly anticipate the return of more assets, contributing to a brighter future for Voyager Digital and its user community.

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Evie

Evie is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.

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