Voyager, one of the largest cryptocurrency brokerages based out of Canada, filed for chapter 11 bankruptcy on July 6th, 2022 during the crypto winter as the company could no longer serve its customers due to the Three Arrows Capital $650 million loan default.
Over 3 million Voyager users, including myself, were affected by this horrible news and could no longer withdraw their crypto funds from the platform.
In this article, I’ll discuss what will happen next as Voyager attempts to restructure itself under Chapter 11 bankruptcy laws and whether you will get some or any of your funds back.
Why Voyager Filed for Bankruptcy
The crypto winter caused a massive customer withdraw request that Voyager didn’t have to funds to honor.
On July 2nd, 2022 Voyager CEO Stephen Ehrlich posted a tweet explaining why Voyager was planning to suspend trading, deposits, withdrawals, and loyalty rewards.
Voyager cited insolvency risks after Three Arrows Capital, a Singaporean crypto hedge fund, failed to repay a 15,520 Bitcoin (BTC) and $350 million USDC loan.
Around 4 days later, Voyager filed for chapter 11 bankruptcy protection to protect themselves due to the inability to repay much of its customer’s crypto deposits.
Are My Crypto Assets on Voyager Still Safe?
Unfortunately, you give up custody of your crypto assets when you deposit them on yield platforms like Voyager. Voyager clearly states in its “Terms and conditions” that your assets belong to Voyager and may be lost.
What to Do Next
Right now, there isn’t much you can do expect wait to see the results of the bankruptcy hearing.