Overview
Voyager, a crypto exchange which suffered bankruptcy in the second quarter of 2022 amid the sustained bear market, has recently placed a pause on the possibility for users to transfer funds or assets from their digital wallets. Voyager had previously boasted of a robust crypto economy from its founding year in 2017, up till it crashed in 2022. As a crypto exchange, it operated as a crypto broker having led successful funding rounds and was headquartered in New Jersey, USA— making crypto deposits, withdrawals and crypto liquidity available for those in the United States.
The Bearish wave that caused the Terra crash/Luna collapse sent $UST to the dust and several venture capitalists also forced Voyager to file for bankruptcy following 3AC’s (Three Arrows Capital) sudden collapse – a VC that accessed loans from Voyager to ape on certain projects.
The fall of Voyager’s empire as traceable to a crack in the walls of major leading crypto institutions holding a firm grip on Voyager remains core to the incessantly pending transfer of crypto funds from Voyager.
Also read: Future Uses for Blockchain Technologies
Is FTX Inability in Buying Voyager a Factor?
Before FTX’s crash in Q3 2022, the CEO of the exchange made a lion’s movement in buying out crypto-related firms getting their share of the bearish market blow. This bold step also came close to closing the deals set for the assets recovery in Voyager that would aid the transfer allowance necessary for affected customers to have their tokens back.
FTX filed for bankruptcy in the Q4 of 2022, leaving Voyager with no option other than pending the possibility of transferring crypto.
Why Was Binance’s Move to Bail Voyager Annulled?
Following FTX’s failure to acquire Voyager in 2022, Binance.US made the decision (After winning the bid) to acquire the deteriorating crypto exchange, having valued it at $1Billion.
This second attempt not only raised the hopes of customers waiting for a trigger to be pulled on transferring their assets but also is remaining stagnant and unproductive following the SEC’s counter and other regulations instigating this move.
In the second week of April 2023, Binance.US called off its attempt to purchase Voyager’s assets stating the hostility and uncertainty of regulations poised against it. This further makes the process for Voyager’s assets transfer abortive, leaving their customers and clients to chance.
What Are the Executives of Voyager Up to Amid These?
The most recent development from the official Twitter handle of Voyager expressed their disappointment with Binance.US’s termination of the initial asset purchase agreement between both parties.
They had buttressed the permissions the Chapter 11 filings accord them as regards the direct distribution of cash and crypto to customers—a process called Toggle Option.
According to this executive release, Voyager intends to “Swiftly return value to their customers via direct distribution”. They also say “We will provide more information on next steps and any actions customers need to take in the coming days”—a statement made known in a tweet dated 25th April 2023. Customers’ patience remains sacrosanct following this new development defining the possibility of any asset transfer.
Are There Legal Steps to Hasten the Transfer Process?
Voyager’s bankruptcy case has been in the court ever since its Chapter 11 filing on the 5th of July, 2022 at the United States Bankruptcy Court for the Southern District of New York. The exchange had taken legal actions following its insolvency in 2022 and had since then remained sometimes indecisive, unprogressive and stagnant as regards the need to execute the transfer of customers’ funds due to several factors.
The most recent of their legal details could be found here, thus answering the question on Voyager’s legal processes.
Conclusion
Voyager’s position as regards the transfer of crypto is almost a year old. By the 5th July 2023, the pending transfer will clock a complete year of indecisions, rejection, regulations, and institutional decisions that has effectively contributed to Voyager’s current state.
Customers’ and users’ impatience are being tried, while the ecosystem claims intentionality in ensuring a smooth transfer following their most recent tweet in April for direct distribution. The best is therefore hoped for as we see the crypto market turn green from Q1 of 2023. Mt. Gox suffered a theft, and its customer had to wait almost a decade before a positive sign was spotted. Recently, FTX also gave a green signal for a re-ignition of operation. Voyager could attempt this or take in other methods to buffer their customer’s patience and make the exchange serve a purpose in its current state.
Frequently Asked Questions
Is the Voyager Crypto App in Operation?
Not for now. This is because the website and the mobile application are undergoing a restructuring and restoration process to get their services back.
How Do Customers Get Support from the Exchange at Such Times?
Since the website is not in maximum operation and the mobile app is not being optimised for fund transfer, users in those regions can reach out to the help centre through this link or use the8r official Twitter account to make your request known.
When Is the Set Time for the Transfer of Funds?
According to reports, Q2 of 2023 is the set time for the transfer and restoration of customers’ funds following the most recent deployment by Voyager—the customers’ initial recoveries.
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