‘My family’s future is ruined’: Dozens of Voyager Digital customers send letters to judge

Jacob spent six years building his cryptocurrency portfolio to 100 Ethereum ETH/USD – worth around $138,000.

Let’s go. And only because he made the decision to put ETH in a digital travel VYGVQ wallet.

What happened: Among the latest to file for Chapter 11 bankruptcy, Voyager is the latest victim of the Earth LUNA/USD cryptocurrency crash and froze customer funds after suspending all activity on its platform in connection with Capital of the Three Arrows (3AC) default and liquidation.

In its bankruptcy filing, Voyager said it had more than $110 million in cash and crypto assets. It has approximately $1.3 billion in digital assets on its platform, 50% of which include claims against 3AC.

Look at this: Coinbase Under SEC Probe Over Crypto Token Listings: Report

Voyager’s Chapter 11 approach is to offer customers a combination of proceeds from the 3AC recovery, common stock of the reorganized company, and Voyager tokens – although Jacob and many others prefer to see their assets returned in full, as any investor would.

“Voyager should have to return 100% of our crypto over time. The negligent loan to 3AC appears to be an intentional failure,” Jacob said in a handwritten letter sent to Judge Michael E. Wiles. “I spent years building this portfolio – my family’s future is ruined if they fail to return my assets.”

The Sam Bankman Fried directed quantitative research company, Alameda Search, sent a restructuring offer to Voyager that would see Alameda assume Voyager’s assets at market value, with any 3AC-related loans excluded. The deal also included an offer for Voyager customers to open accounts with Fried’s crypto platform, FTXand receive their share of the receivables in the accounts.

The deal was rejected – Voyager calling it a ‘low ball’ to offer.

Related: ‘Low-Ball Bid’: Bankrupt Voyager Rejects Sam Bankman-Fried Firms Takeover Offer
Take put onFor example, another Voyager client who has a substantial amount of money tied to the bankrupt company, “I currently have about 31,000 frozen on the Voyager exchange,” he said. “I wake up most nights and walk up and down the stairs contemplating my own mistakes and wondering if this will ever end. My anxiety has been a struggle. To have hope one day, and the next to have it shattered.”

Had Voyager agreed to the deal, clients like Jacob and Don would have had access to a substantial portion of its assets, almost immediately.

Voyager CEO Steve Ehrlich told Benzinga in early June – just weeks before filing for bankruptcy – that all client assets were safe.

“Our partnership with Celsius [another bankrupted firm] completed a while ago, so our clients’ assets are safe and we are processing everything as normal,” Ehrlich said.

Voyager told its customers that operations were normal until it announced it was suspending withdrawals – now the company’s customers are wondering if they will ever be able to get their digital currency back.

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