While Voyager Digital has announced the terms of reimbursement for blocked cryptocurrencies, platform customers may only recover 35.72% of their investment. Back to this news, which makes the expression “not your keys, not your coins” take on its full meaning.
Voyager Digital unveils a plan for the reimbursement of its customers
After Binance.US withdrew on April 25, the Voyager Digital soap opera seems to be coming to an end, and the platform is now planning to proceed with the liquidation of its assets for direct restitution to its customers.
On the other hand, this restitution turns out to be very weak according to the first forecasts. And for good reason, during the initial distribution, only 35.72% of the investments should be returned to them in the first place.
Thus, out of $1.76 billion in deposits, only $1.33 billion is distributable, and the various additional charges leave less than $630 million for customers:
Voyager Digital initial distribution
As we can see, part of the amounts withheld relate to Alameda Research. Indeed, the debtors of the bankrupt company seek to recover $445 million from Voyager Digital.
However, even if Alameda Research failed in its request, the amount returned to investors would only be 63.74%.
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“Not your keys, not your coins”
Among the other charges retained, we also note that Voyager Digital plans to keep a total of $259.6 million in order to settle the various costs related to this bankruptcy.
What raises questions is that all of these sums are deducted from amounts invested by clients who had placed their trust in the platform. Faced with such an observation, the expression “not your keys, not your coins”, translated as “not your keys, not your cryptocurrencies” takes on its full meaning.
For platforms regulated in France under the digital asset service provider (PSAN) regime, the segregation of assets should precisely make it possible to avoid such cases. If the self-custody of its cryptocurrencies implies responsibilities, we see there that trust in centralized players can also have a cost.
On the other hand, Voyager Digital unveiled a list of 38 tokens not supported in the refund. Assets in this list, such as ALGO, AVAX, EGLD or SOL, will be sold to be returned to investors in the form of USDC. For the other 67 cryptocurrencies, these can be withdrawn as is when the time comes.
Any objections to this announcement must be filed in the United States Bankruptcy Court for the Southern District of New York by May 15. If no date for the reopening of the platform has not been communicated, investors will have 30 days from this date to make their withdrawal.
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Source: Court document
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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
Vincent Mayor
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