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%.
👉 To go further — Find our guide to storing your cryptocurrencies outside of centralized platforms
The best way to secure your cryptocurrencies đź”’
🔥 Buy, trade, grow and manage over 5,500 cryptos
🎧 Listen to this article and all other crypto news on Spotify
“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.
👉 Also in the News — Ethereum Foundation sends 15,000 ETH to Kraken: Are the concerns really justified?
Our service dedicated to cryptocurrency investors. Get real-time analytics and optimize your crypto portfolio.
Source: Court document
Newsletter 🍞
Receive a summary of crypto news every Monday by email đź‘Ś
What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.