Voyager Digital recently filed for bankruptcy, which has shocked many investors. Some investors say they have “millions” of dollars worth of crypto assets or most of their life savings locked up on the cryptocurrency exchange. However, if you want to trade in cryptocurrencies, create a free account with Bitcoin Freedom and start trading now!
This is because Three Arrows Capital (3AC) didn’t pay back a loan of $650 million it got from the company. Even though Alameda gave Voyager a $500 million loan in June, the company filed for bankruptcy on Wednesday of this week.
Fortune talked to a lot of people who are still upset that Voyager went bankrupt for an article that came out on Saturday. Some people may have millions of dollars riding on the site, and others may have put almost all of their savings into it.
One user who wants to remain anonymous and goes by the name “Robert” says that he has put about $6,000 on the site, which is almost 70% of his total funds.
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Robert, who has been an investor for the past six years, went on to say that, even though he had done a lot of research on Voyager before using the platform, he never would have used it if he had known that the company planned to lend client assets to a hedge fund:
The customer said, “I didn’t know that Voyager would lend USDC from customers to a hedge fund.” If I had known that it might be lent out, I probably would have kept the money in cash and locked it in my safe.
Fortune also met with Scott Melker, who is well-known in the crypto world and goes by the online name “The Wolf of All Streets.” Melker, who said he has $700,000 stuck on Voyager, was quoted as saying that he hasn’t been able to get the money out.
“Listen, I’ve lost millions of dollars,” he said, adding that he felt bad for being too dependent on Voyager since he often talked about managing risks and keeping your assets.
Melker has about 851,000 followers on Twitter, and 121,000 people are subscribed to his YouTube channel. He said that even though he stands to lose a lot from Voyager, he feels worse about promoting it to his audience, friends, and family in the past:
A well-known cryptocurrency broker named Voyager Digital is said to have filed for bankruptcy. The company gave the unstable market and the sudden failure of Three Arrows Capital as reasons. Voyager Digital temporarily stopped trading, withdrawals, and deposits on its platform a few weeks ago.
According to the information in the petition, Voyager Digital owes about $960,000 to Google and $75 million to Sam Bankman-Alameda Fried’s Research. Sam Bankman-Alameda Fried’s Research just saved the broker’s life by giving him $485 million (PDF). In its statement, Voyager didn’t say that it owes money to any other companies.
Voyager said that Three Arrows Capital, a well-known cryptocurrency hedge fund that went bankrupt last week, owed it more than $650 million in unpaid fees and other costs. Credit Suisse traders Zhu Su and Kyle Davies set up Three Arrows Capital, which was in charge of about $10 billion worth of assets.
A number of companies were owed a lot of money by Three Arrows Capital (3AC). After the failure of the hedge fund 3AC, the cryptocurrency lender BlockFi, which was also connected to 3AC, fought to stay in business. Last week, the US branch of FTX reached a deal to buy BlockFi for up to $240 million.
They don’t think Voyager is a good place to trade cryptocurrencies, so they don’t recommend it. Since the company is filing for bankruptcy and is having trouble with cash flow, it is possible that account holders’ assets will be frozen if they can’t trade or get their money out.
