Bankrupt Voyager Digital Selling Off Crypto Holdings Through Coinbase

The defunct crypto lender Voyager Digital is reportedly selling its assets via Coinbase digital exchange. A report from Lookonchain, an on-chain analyst on Twitter revealed that Voyager had transferred crypto assets to Coinbase almost every day since February 14.

In addition, On-chain data also highlighted that the bankrupt firm received at least $100 million in USD Coin over the course of three days beginning on February 24. 

According to the details from the report, Voyager was alleged to have moved millions of dollars using a variety of 23 crypto tokens, including Ether (ETHUSD), Shiba Inu, (SHIBUSD), and Chainlink (LINKUSD). The Shiba Inu token was observed to be the highest transferred token at a value of over $28 million.

Meanwhile, Voyager currently holds approximately $631 million in crypto assets, with the highest holding in Ether at $276 million despite the transfer.

Voyager Digital Plans Restructuring

Voyager Digital exchange filed for Chapter 11 bankruptcy protection in July, days after suspending withdrawals on its platform. At the time, the firm stated that the filing was necessary towards ensuring value for its users.

Voyager said it would collaborate with its creditors to devise a repayment strategy, which could include selling assets or restructuring its operations. Based on the outcome, investors might be eligible to receive a portion of their money back, although the exact amount will depend on the plan’s details and Voyager’s overall financial situation.

As part of its restructuring plan, the firm opened a bid for sales of its assets to recover funds for users. So far, quite a number of firms including Binance, CrossTower, and INX have indicated an interest to place a bid for Voyager’s assets.

Notably, the bankrupt firm recently received preliminary court approval to sell $1.02 billion in assets to Binance. The announcement comes at a time when Voyager wants to expedite the review of its request to sell assets to Binance.US, which could cause the transaction to be delayed or canceled.

Interestingly, the SEC has questioned Binance’s capacity to close a deal of this size since its acquisition agreement required more details.