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Voyager Digital

1.4T$ Shiba Inu at $14.4M Amid Voyager’s Cryptocurrency Sell-off

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Shiba Inu takes the spotlight as Voyager Digital, the troubled crypto lender, initiates a selling frenzy on Coinbase over the past four days. The consequences of this calculated move hold broad significance, especially for a specific cryptocurrency that stands at the core of this divestiture.

The data, meticulously curated by Lookonchain, paints a vivid picture of Voyager’s asset liquidation, involving a diverse array of tokens. Shiba Inu, a token that has garnered significant attention for its dog-themed meme status, was among the cryptocurrencies sold, amounting to approximately $14.4 million. This event marks a critical juncture for Shiba Inu, an asset that has seen both meteoric rise and turbulent fluctuations.

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Source: X

The Shiba Inu token, with its playful reference to the Shiba Inu dog breed, has garnered a considerable following since its inception. While its origins lie in internet meme culture, it has transcended its roots to become part of the crypto landscape. Its involvement in Voyager’s sell-off saga highlights the evolving role of meme-inspired tokens in the broader market.

Beyond Shiba Inu’s role in this narrative, the sell-off underscores Voyager’s journey through a period of financial turmoil and industry uncertainty. Struggling against the backdrop of the crypto sector’s unpredictable nature, Voyager filed for Chapter 11 bankruptcy protection in July. Volatility within the crypto market, coupled with a significant default by Three Arrows Capital, led to this drastic measure.

As Voyager navigates these challenges, the company’s commitment to fulfilling its obligations to customers remains evident. Despite the formidable hurdles, Voyager continues to liquidate its assets to meet its obligations, aiming to pay back its customers. In May, the company projected a potential recovery of approximately 35% of customers’ deposits, demonstrating its resolve in the face of adversity.

Shiba Inu: A Crypto Trend Illuminator

The intersection of Shiba Inu and Voyager’s saga illustrates broader trends within the crypto industry. Memes and internet culture have become intertwined with the crypto market, adding layers of complexity to the traditional financial landscape. SHIB’s journey from meme to tradable asset, entangled with a struggling crypto lender’s liquidation, highlights the dynamism and unpredictability that define the crypto space.

Furthermore, Voyager Digital’s recent sell-off on Coinbase, encompassing diverse assets including Shiba Inu, is emblematic of the crypto industry’s volatility and evolution. Shiba Inu’s involvement serves as a reminder that memes can have a tangible impact on the financial world, while Voyager’s struggles reflect the challenges inherent to this ever-changing landscape. As the crypto sector matures, the intersection of traditional finance, internet culture, and innovation will undoubtedly shape its future trajectory.

Voyager Digital Restores Fund Withdrawals: Over $250M Pulled Out

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Crypto lending platform Voyager Digital restarted fund withdrawals after almost a year of suspension as investors and creditors rushed to take in more than $250 million in three weeks. Since filing for Chapter 11 bankruptcy, the firm said on June 23 that withdrawals would resume, allaying users’ fears.

Due to the turbulence in the cryptocurrency markets, Voyager was one of many crypto lenders to file for bankruptcy protection in 2022. Others were Genesis Global Capital, Celsius Network, and BlockFi. A significant loan made to the cryptocurrency hedge firm Three Arrows Capital [3AC] went bad, which made the situation worse.

Voyager Digital’s financial woes began after the implosion of the Terra ecosystem, which inflicted substantial damage on investors, eroding over $40 billion of their funds. To top that, widespread withdrawals in the crypto-lending space sparked a bank run, leading to an acute liquidity crisis.

Under the direction of CEO Steve Ehrlich, the publicly traded entity with headquarters in Canada disclosed liabilities ranging from $1 billion to $10 billion during its bankruptcy case.

The recovery of funds for Voyager users is also heavily reliant on the outcome of the legal dispute with FTX, in which the former is attempting to retrieve almost $446 million in loan repayments paid to it prior to FTX’s bankruptcy. Customers’ anticipated reimbursement would increase to 63.74% if the lending firm completely wins the FTX litigation, per court documents.

At a court hearing in Manhattan, U.S. Bankruptcy Judge Michael Wiles green-lighted Voyager’s liquidation plan, enabling the business to restore around $1.33 billion in cryptocurrency assets to consumers and put a stop to its Chapter 11 reorganization efforts.

Voyager’s Legal Fees Pile Up

The Chicago-based law firm Kirkland & Ellis recently charged Voyager and associated debtors a total of $27.97 million for legal services rendered between July 5, 2022, and May 19, this year. According to the document, the debtors have already given Kirkland & Ellis compensation of $23.38 million.

Voyager is not the only business dealing with significant costs throughout its bankruptcy procedures. As was previously reported, from February 1 to April 30, FTX spent more than $120 million on financial and legal consulting costs.

Voyager’s legal fees soar, creditors pay a hefty score

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Voyager Digital was scheduled to pay Kirkland & Ellis, its legal advisor, a sum of $1.1 million for services rendered during the bankruptcy proceedings in April. According to records, the law firm utilized a combined hourly rate of $1,313.18 for all the services provided during that month. The total fees amounted to over $1.4 million, with certain senior members of the firm charging an hourly rate exceeding $2,000.

Kirkland & Ellis has worked with several bankrupt crypto companies, including BlockFi and Celsius.

Voyager sought Chapter 11 bankruptcy protection in July following the severe impact of the crypto credit crisis, which also affected numerous lenders and brokers. Under the leadership of former E*Trade executive Steve Ehrlich, the publicly traded company in Canada disclosed liabilities ranging from $1 billion to $10 billion during its bankruptcy filing.

Voyager is not the only company facing substantial fees during its bankruptcy proceedings. As previously reported, FTX incurred over $120 million in financial and legal advisory fees from February 1 to April 30.

Legal battles surround Voyager

McDermott Will & Emery, a law firm, invoiced creditors of the bankrupt crypto brokerage Voyager Digital approximately $5.1 million for legal services rendered from March 1 to May 18.

In a court filing on Monday, the law firm submitted the bill to the “Official Committee of Unsecured Creditors,” bringing its overall compensation to $16.48 million for the period spanning from July 22, 2022, to May 18, 2023. Up to this point, creditors have paid the law firm a total of $8.97 million.

In July 2022, Voyager sought Chapter 11 bankruptcy protection following its involvement in the credit crisis that affected the cryptocurrency industry the previous year.

According to a recent court filing, Kirkland & Ellis, a law firm, billed Voyager and associated debtors a combined amount of $27.97 million for the legal services provided between July 5, 2022, and May 19 of this year.

As per the filing, the debtors have thus far paid a total of $23.38 million in compensation to Kirkland & Ellis.

It is worth noting that Kirkland & Ellis has also represented several bankrupt cryptocurrency firms apart from Voyager, including BlockFi and Celsius.

FTX Wins Auction for Voyager Digital’s Assets

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FTX and Binance were pursuing the purchase of Voyager. In July, FTX submitted a proposal for Voyager, which was turned down as a “low-ball offer.” 

Early in July, Voyager stopped allowing consumers to withdraw their money as cryptocurrency values fell. Then, as creditors of the firm in bankruptcy court, its clients were compelled to line up alongside experienced restructuring attorneys and financiers as inexperienced participants in a potentially lengthy procedure in order to recover their cash.

The assets of Voyager were put up for auction this week through the bankruptcy court. The billionaire Sam Bankman-FTX Fried’s exchange and Wave Financial, a digital asset investment company, squared off in the last round.

FTX steals the show

Sam Bankman-billionaire-founded Fried’s digital asset exchange, FTX US, won the bidding for the assets of defunct crypto firm Voyager Digital Ltd.

According to a statement released by Voyager Digital on Monday in New York, the arrangement is worth roughly $1.4 billion, made up of an “extra compensation” of about $111 million and the $1.3 billion market value of every cryptocurrency held by the insolvent company.

After the bankruptcy process is through, customers will be able to switch to the FTX US platform, according to Voyager, who also stated that the acquisition agreement would be submitted to the court on October 19 for approval.

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FTX Wins Auction for Voyager Digital’s Assets 3

The acquisition comes after multiple prior attempts by Sam Bankman’s exchange to rescue or buy Voyager. At the end of March, the New York-based network had 1.19 million funded accounts and around 3.5 million users.

After an unsuccessful attempt by Alameda Research, a trading firm connected to FTX, to save Voyager with a revolving line of credit, the company filed for bankruptcy protection in July.

Alameda said in September that it will pay back the $200 million in BTC and ETH it had acquired from Voyager by month end.

Bankman-Fried has been relentlessly acquiring struggling cryptocurrency businesses this year, snatching up millions of users and priceless technology for less than they were worth.

Earlier this year, FTX supported the cryptocurrency platform BlockFi and was considering buying out Robinhood Markets Inc.

The current auction which ended up in Sam Bankman’s favor lasted for two weeks.