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Voyager Sells Crypto, Customers Vote for Bankruptcy

Voyager Digital has transferred aroud $121 million in crypto whilst its customer base votes in favour of Chapter 11 bankruptcy.

Image credit: Towfiqu barbhuiya on Unsplash

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Voyager Digital has been selling crypto rapidly whilst its customers have voted for bankruptcy proceedings.

Arkham Intelligence data shows Voyager transferred around US$121 million in crypto to various crypto exchanges in February. Across the last four days, it received US$150 million in USDC stablecoins.

At least US$54 million was transferred to Coinbase and Binance.US over the past week. US$27.4 million of Ethereum, US$12.2 million of Shiba Inu and US$2.5 million of Link were also sent to the other exchanges over the last week.

Post sell-off, Voyager holds about US$700 million in two wallets.

Chapter 11 Bankruptcy

On Tuesday, Voyager revealed its customer base voted in favour if its Chapter 11 bankruptcy plan.

"Voyager customer voting on the company’s chapter 11 plan has concluded and finalized: of those who participated, 97% of customers, representing 98% of the total claims, voted in favor," the company tweeted.

In July 2022, Voyager announced it was initiating Chapter 11 to “create an efficient path to resume account access and return value to customers.” Chapter 11 allows the company to preserve its assets whilst it intiates financial restructuring.

Voyager was exposed to Three Arrows Capital (3AC) by as much as US$665 million. The brokerage stated its exposure to 3AC includes 15,250 bitcoin (US$315 million) and US$350 million worth of USDC.

Binance had planned to acquire Voyager, but its plans were recently halted by the US Securities and Exchange Commission (SEC), which opposed the US$1 billion deal.

Read more: Binance Rekt by SEC Again as $1B Voyager Deal Opposed

The SEC said in a filing that the deal could violate laws and might be discriminatory, adding that it was particularly concerned about how Binance plans to repay Voyager’s former customers.

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