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Voyager Digital: customers may only get 36% of their cryptocurrencies back

by Patricia

When Voyager Digital announced the terms and conditions for refunding blocked cryptocurrencies, the platform’s customers could get back just 35.72% of their investment. Here’s a look at the news, which gives full meaning to the phrase “not your keys, not your coins”.

Voyager Digital unveils plan for customer refunds

Following the withdrawal of Binance.US on 25 April, the Voyager Digital drama seems to be coming to an end, and the platform is now planning to liquidate its assets and return them directly to its customers.

However, initial forecasts suggest that this return will be very low. And with good reason: during the initial distribution, only 35.72% of the investments should be returned to them in the first instance.

So, out of 1.76 billion dollars in deposits, only 1.33 billion is available for distribution, and the various charges that have been added leave less than 630 million dollars for customers:

Initial distribution of Voyager Digital

Initial distribution of Voyager Digital


As we can see, some of the amounts withheld relate to Alameda Research. The debtors of the bankrupt company are seeking to recover $445 million from Voyager Digital.

However, even if Alameda Research were unsuccessful in its claim, the amount returned to investors would only be 63.74%.

“Not your keys, not your coins “

Among the other charges, we also note that Voyager Digital plans to keep a total of 259.6 million dollars to pay the various costs associated with this bankruptcy.

What is questionable is that all of these sums are being withheld from amounts invested by customers who had placed their trust in the platform. Given this situation, the expression “not your keys, not your coins” takes on its full meaning.

For platforms regulated in France as digital asset service providers (DASPs), segregation of assets is precisely designed to avoid such situations. If self-custody of cryptocurrencies entails responsibilities, we can see that trust in centralised players can also come at a cost.

On the other hand, Voyager Digital has unveiled a list of 38 tokens not supported in the refund. The assets on this list, such as ALGO, AVAX, EGLD and SOL, will be sold and returned to investors in the form of USDC. The 67 other cryptocurrencies can be withdrawn as they stand at the appropriate time.

Any objections to this announcement must be filed with the United States Bankruptcy Court for the Southern District of New York by 15 May. If no date for the reopening of the platform has been communicated, investors will have 30 days from that date to make their withdrawal.

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