Behind the Three Arrows Capital caseanother cryptocurrency company announced bankruptcy, VoyagerDigitalwhich is also leaving a multimillion-dollar loss for the sector, in addition to leaving several investors and clients desperate, fearful of having lost all their savings.
Voyager’s recent chaos is a direct reflection of the Payment default of Three Arrows Capital (3AC)as the company also entered into embezzlement due to non-payment of 3AC, leading the company to announce bankruptcy last Wednesday.
The company officially announced bankruptcy by filing documents with the United States Bankruptcy Court, Southern District of New York. The exchange has two branches, the main Voyager Digital Holdings Y VoyagerDigitalboth based in the same US state.
Despite everything, so far the company guarantees that throughout the Voyager process it will continue to operate and that the objective is to recover the assets and “come out stronger” from the situation.
“Voyagers, today we are beginning a voluntary restructuring process to protect the assets on the platform, maximize value for all shareholders, especially customers, and come out of the situation an even stronger company. Voyager will continue to operate during the process.”
Voyagers, today we began a voluntary financial restructuring process to protect assets on the platform, maximize value for all stakeholders, especially customers, and emerge as a stronger company. Voyager will continue operating throughout.https://t.co/TxlO4eua8E
— Stephen Ehrlich (@Ehrls15) July 6, 2022
Despite this optimism on the part of the CEO of Voyager, customers are desperate because they have lost years of savings with the current situation of the company. Vice has interviewed some of these clients and investorswho are really worried about the situation.
Voyager clients believe they will lose their assets
According to the website, an investor named Jeffery Cosey37, believed that Voyager represented a better way to keep his money than a traditional bank, citing the bonuses he received on deposits and the potential for a higher return on his investment.
“Everyone seemed trustworthy. They seemed legitimate, it wasn’t something that felt suspicious or risky.”
Cosey said that he ended up depositing about 90% of all his savings in Voyager, his investments were made in Bitcoin, ethereum and other smaller cryptocurrencies, in addition to USD Coina dollar-backed stablecoin.
As Cosey waited for the possibility of the cryptocurrency market crashing, he says he couldn’t believe how Voyager managed their clients’ money.
“I never thought a publicly traded company could gamble my money like that. That was the risk I didn’t understand.”
In this case, Voyager made a loan to 3AC for US$650 million, but, as we already know, the company defaulted on its creditors and left Voyager in a loss, precisely in the middle of a big drop in the crypto marketwhich made everything even more difficult.
Cosey wasn’t the only investor heard by the publication, as a Chicago financial adviser was also caught off guard by Voyager’s bankruptcy.
“I’m broke. I have to start my life all over again,” said the financial adviser.
The worst part of Voyager, as well as 3AC, is that crypto companies were doing exactly what traditional banks do, but with the added risks of crypto.
In other words, many of these companies are operating with the disadvantages of both the digital and traditional sectors, exposing their clients to various risks, often without exposing these risks to the clients.
With these situations, it is now more than necessary to pay attention to where you invest your savings in the crypto market.