The Billion-Dollar-Bankruptcy of Voyager

This Billion dollar company just filed for BANKRUPTCY!

I’m talking about Voyager, the risk-free and most trustworthy crypto brokerage on the market. They boast 2.7 M users and they are known as a crypto brokerage in which customers could buy and sell crypto.

However, what made Voyager different was that you could also earn money on crypto that you held in Voyager. Voyager claims that they can yield these results because they would lend out your money, but only to the most trustworthy people... They then got us regular people to believe this by bringing on celebrities, financial gurus, and even the eccentric billionaire, Mark Cuban, to promote Voyager and what the company could offer. Cuban was quoted as saying, “I’m not trying to tell you it’s 100% risk-free, but it’s close to risk-free as you’re going to get in the crypto universe.” Unfortunately, they were not as safe or as risk-free as we were led to believe.

It was recently discovered that Voyager gave over 50% of its loans to a single hedge fund called Three Arrows Capital. Three Arrows Capital decided it would be smart to invest almost all of this money into LUNA, a token that lost 99% of its value shortly after. This was due to a failure of Terra’s algorithmic stablecoin UST, that induced a “death spiral,” tanking the value of LUNA to basically nothing.

So, after Luna basically dropped to nothing, Voyager was forced to file for what’s known as Chapter 11 bankruptcy. Now, this isn’t the bankruptcy in which you just close up shop and shut down forever. It’s the kind where you restructure your business to help repay debts. Voyager’s idea of restructuring, however, is a little questionable. To help “repay” the debts of their clients, they plan to send out more “Voyager Tokens” and voyager shares. Which, if you’re wondering who would want shares in a company that just went bankrupt, well I’m right there with you. 

What Voyager SHOULD be doing is filing for a SIPA liquidation. This is what’s known as the Securities Investors Protection Act, which protects investors by ensuring that they are the first to get paid out in the event of a bankrupt brokerage. However, Voyager is steering clear of this option because it would essentially leave them with nothing. And, as we know Voyager has its own interest in mind, not the interest of its loyal customers.

It’s truly just insane that a company that advertised trustworthiness and freedom of risk would screw their customers and investors over like they have. The people want their money back, not shares in a company that failed them.

Voyager is now in court as this filed bankruptcy is getting sorted out, but it will be very interesting to see how this whole situation ends up. All I know is that there are a lot of people who got screwed over and I really hope that Voyager eventually pays the price, not their investors.