Voyager Digital to Auction Off Assets on September 13, VGX Token Spikes 36%
- Voyager Digital has approximately $1.3 billion of crypto assets on its platform.
- In addition, claims against Three Arrows Capital (3AC”) of more than $650 million.
- Although the company has promised to return customers’ funds, the distressed crypto firm has noted that the figures will depend on the amount recovered from 3AC.
Voyager Digital, a distressed cryptocurrency lending firm undergoing a restructuring process under chapter 11, will auction off the remaining assets on September 13, 2022, at 10:00 a.m., prevailing Eastern Time, at their offices in New York.
According to court documents, the hearing approving the results of the Auction is currently set for September 29, 2022. However, the filing indicated that the hearing may be continued or adjourned thereafter from time to time without further notice other than an announcement of the adjourned date or dates in open court at the hearing.
Following the announcement, Voyager Digital token (VGX) has recorded a 36 percent spike today to trade hands at around $1.03. Furthermore, there are reports that cryptocurrency exchanges FTX and Binance are on the list of over 20 bidders in the set auction.
Voyager Digital and the Cryptocurrency Lending Market
Notably, Voyager has approximately $1.3 billion of crypto assets on its platform, plus claims against Three Arrows Capital (3AC”) of more than $650 million. Remember, 3AC owes a whopping $3.5 billion to over 27 companies and is currently declared bankrupt.
Voyager Digital has suffered the fate that a dozen other crypto lending companies have been subjected to including Celsius. The company paused all activities including deposits and withdrawals, locking out many investors from their funds.
However, the company has promised to reopen access to customers’ USD funds, which are held by a different entity.
“Customer USD is held in a special type of bank account called a For Benefit of Customers (“FBO”) account at Metropolitan Commercial Bank of New York (“MCB”). The amount of USD held in the FBO account is equal to the amount of USD in customer accounts. USD deposits will be available after a reconciliation and fraud prevention process,” Voyager previously noted.
Although the company has promised to return customers’ funds, the distressed crypto firm has noted that the figures will depend on the amount recovered from 3AC. The situation between 3AC and the facilitating liquidator has been sour despite an existing court order.
Side Notes
In the past year, the cryptocurrency market size has significantly shrunk, following the liquidation of $2 trillion. According to market data provided by Coinmarketcap, the global crypto market cap is $958.93B, a 0.77 percent increase over the last day.
Notably, the total crypto market volume over the last 24 hours stands at around $71.98B, representing a 7.21 percent decrease. The total volume in the DeFi market, the largest industry in the cryptocurrency market, is currently $6.15B, representing 8.55 percent of the total crypto market 24-hour volume.
Worth noting that the volume of all stablecoins stands at around $66.94B, which is 93.01 percent of the total crypto market 24-hour volume. Otherwise, Bitcoin’s dominance is currently 38.10 percent.
I'm passionate about cryptocurrency. I began following the development of Bitcoin and other digital currencies in early 2013, and quickly became fascinated by the potential of this new technology. In the years since, I've followed the rise of the crypto industry with close attention, and written extensively on the subject. .
