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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.

Bankrupt Voyager’s Multi-Million Dollar Transfer To Coinbase

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In a significant development in the crypto world, Bankrupt blockchain company Voyager has reportedly transferred a substantial amount of assets to cryptocurrency exchange Coinbase. Data sourced from etherscan has revealed that Voyager moved a total of 1,500 ETH, valued at approximately $2.77 million, and a staggering 250 billion SHIB tokens, with an estimated worth of $2.7 million.

Adding to the intrigue, it has been disclosed that the company is in the process of relocating all of its remaining tokens to a primary address. This move comes amidst the backdrop of Voyager’s ongoing financial struggles and the declaration of bankruptcy.

The collective value of the assets associated with Voyager addresses stands at a staggering $81.63 million. This figure encapsulates the range of cryptocurrencies held within Voyager’s accounts, raising questions about the company’s financial management and the potential impact of these transfers on its overall stability.

Market analysts and e­xperts closely observe­ the ongoing situation, analyzing the motives be­hind these asset transfe­rs and their potential impact on the company and the­ broader cryptocurrency ecosyste­m. As the story evolves, the­ community prepares for possible marke­t fluctuations and seeks clarity regarding Voyage­r’s future direction and its cryptocurrency holdings.

Scams Target Voyager Customers

However, it was speculated that this latest move follows recent reports of a series of scams targeting Voyager Digital customers during a window that permitted partial withdrawals from the insolvent crypto brokerage. 

According to sources from Bloombe­rg, law enforcement has be­come aware of these­ fraudulent activities. Darren Azman, the­ company’s legal counsel, has confirmed the­ir knowledge of the situation.

Betwe­en June 23 and July 22, the company’s custome­rs withdrew a substantial sum totaling $490 million. This amount constitute­d nearly 80% of the available funds and was disclose­d during a teleconfere­nce hearing held at the­ Southern District of New York Bankruptcy Court within a month-long period.

As per Bloomberg’s investigation, the scammers deployed various tactics to deceive Voyager customers, with one prevalent strategy being the establishment of counterfeit websites promising elevated returns. Upon linking their wallets to these fake platforms, customers fell victim to substantial losses.

Related Reading | Diving Deeper into the ‘SHIB is Greater Than X’ Assertion: Lead Developer Provides Clarity

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.

Binance and Voyager Deal Falls Apart Due To US Crypto watchdogs

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New York and Federal finance regulators have blocked a $1.02 billion transaction to Voyager by Binance.US in order to buy the assets of the bankrupt cryptocurrency lender, claiming in documents on February 22 that it may be discriminatory and illegal.

The action comes in response to the Securities and Exchange Commission’s (SEC) growing involvement in the cryptocurrency space. SEC investigations into possible unregistered security sales recently led Kraken, a cryptocurrency exchange, to halt its staking activities.

Given how the company envisions paying back Voyager’s former clients, the SEC warned that certain aspects of the proposed Binance.US-Voyager merger may also violate the law.

Citing, in particular, the VGX token issued by Voyager, SEC said,

“The transactions in crypto assets necessary to effectuate the rebalancing, the redistribution of such assets to Account Holders, may violate the prohibition in Section 5 of the Securities Act of 1933 against the unregistered offer, sale, or delivery after sale of securities.”

The SEC further stated that it is the Debtors’ responsibility to demonstrate that the Plan’s contents are realistic and do not conflict with any applicable laws. As further evidence that the purchase would become “unfeasible” and “difficult to conclude,” the regulator noted media reports that Binance is preparing to pay fines for prior violations of money laundering and corruption laws.

The New York State Department of Financial Services (NYDFS) and Attorney General Letitia James both opposed the purchase in two documents filed on February 22. The documents included claims that Voyager was unlawfully serving consumers in the state.

Did Voyager Operate Illegally?

According to the petition, even though none of the debtors hold a licence in New York, the Department is aware of claims and other details suggesting that one or more of the debtors may have operated in New York against the law and may still be doing so.

According to the lawsuit, Voyager onboarded New York consumers and operated a virtual currency business within the state illegally without a license, in violation of New York laws and regulations, denying its customers of protection. The scheme also unfairly targets New Yorkers, who will have to wait six months to get their cryptocurrency back from Binance.US increases support in the state, according to NYDFS.

However, Voyager has already maintained that the Binance.US deal provides the best result for creditors and that NYDFS complaints are “hypocritical” because the authorities themselves are restricting the availability of cryptocurrencies.

Voyager Dispatch $3.4M Shiba Inu Tokens To Coinbase

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Around 250 billion Shiba Inu tokens roughly worth $3.4 million were moved to Coinbase by now-defunct crypto brokerage firm Voyager.

As per on-chain sleuths, PeckShield, Voyager has transferred crypto worth a total of $28.7 million to BinanceUS and Coinbase, including 15k ETH, or a little over $25 million.

Surprisingly, the move occurs at a time when the price of the Shiba Inu also rose in tandem with the broader market. At the time of writing this post, SHIB trades at $0.000013, with a marginal increase in the past 24 hours.

For the record, Voyager continues to hold the second-largest single position for the broker at 1.6 trillion SHIB [$23.5 million]. The cryptocurrency broker had previously made similar transfers the day before to Binance US and Coinbase.

On February 14, Voyager sent 6,000 ETH to Binance US and 1,000 ETH to Coinbase, according to PeckShield.

The unexpected transfer from the bankrupt firm raised a few eyebrows. There were rumors going around that Voyager was trying to use the rally to liquidate money for its creditors.

It’s important to remember that in December, Binance.US and Voyager decided to sell some of their assets. The agreement has been rejected by the US regulator, so it remains in limbo.

The Southern District of New York Bankruptcy Court will hold a final hearing on the subject in March. Although it appears that the sale will be approved, it still needs the consent of the majority of Voyager’s creditors.

On the other hand, Binance.US has recently announced that on February 24 at 7:00 a.m. EST, it will delist Kilo Shiba Inu [KSHIB] and list Shiba Inu [SHIB] against the U.S. Dollar.

By February 20 at 10:00 p.m. EST, the KSHIB/USD trading pair will be discontinued, and any open KSHIB spot trade orders will be canceled, the post read.

Shiba Inu’s Major Update On Binance.US

Customers who own KSHIB will start receiving converted SHIB payouts at a ratio of 1 KSHIB for every 1,000 SHIB by February 24 onwards.

Throughout this change, users can still have access to the SHIB/USDT trading pair. In addition to listing KSHIB, Binance.US has also launched the KSHIB/USD trading pair, joining the pre-existing SHIB/USDT and SHIB/BUSD pairs.

The move is touted to benefit Binance.US clients with an improved trading experience. According to CoinMarketCap, SHIB is presently the 13th largest cryptocurrency by market capitalization.

Voyager Secures Court Approval to Sell Assets to Binance.US for $1 Billion: Report

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On January 10th, Reuters reported that Voyager gained initial court clearance to sell its assets to Binance.US for $1 billion. The final decision will be determined by creditors’ vote during a future court proceeding. Customers can recover 51% of the cost of their deposits through the sale.

A U.S. bankruptcy judge in New York, Michael Wiles, has permitted Voyager to proceed with an agreement to sell assets to Binance.US. However, the sale will not be final until it is approved by the court at a later date. The report stated that the court “will seek to expedite a U.S. national security review of the deal.” 

During the court hearing, Joshua Sussberg, an attorney for Voyager, stated that the company was addressing concerns brought to light by the U.S. Committee on Foreign Investment in the United States (CFIUS) that had been raised over the holidays.

Sussberg said:

We are coordinating with Binance and their attorneys to not only deal with that inquiry but to voluntarily submit an application to move this process along. 

As per the attorney Joshua Sussberg, the Binance deal involves a $20 million cash payment and a provision for transferring Voyager’s clients to BinanceUS’s cryptocurrency exchange platform, enabling them to make withdrawals after a gap of July.

Binance.US Transaction To Result In “Greater Recoveries”

The Voyager Official Committee of Unsecured Creditors (UCC) announced in a Twitter statement that, following the court hearing and recent developments in the case, they would be answering customer inquiries directly through Twitter. Moreover, they will also be conducting an upcoming Twitter Spaces town hall meeting to address their concerns.

https://twitter.com/VoyagerUCC/status/1612866531939192840

In addition, the Committee asserts that:

The Binance.US transaction will result in greater recoveries for creditors than a self-liquidation.

The UCC stated that their primary focus in any transaction is to ensure the security of the cryptocurrency for all creditors, taking precedence over economic considerations, from the time of the transaction’s completion until each creditor’s distribution can be withdrawn.

In the past two weeks, the UCC collaborated with BinanceUS to revise different elements of the transaction, and the exchange consented to make several crucial modifications.

The UCC has highlighted that the transfer of crypto assets from Voyager to BinanceUS will only happen when the creditors can withdraw them instantly, and this will occur on a weekly schedule. 

This way, the UCC has ensured that there is no chance of a significant crypto transfer taking place on the closing date, which could potentially be at risk if Binance.US goes into insolvency.

The UCC has given its support for the transaction with BinanceUS after reaching an agreement on the weekly transfer of cryptocurrency to the exchange only when creditors have the ability to withdraw them instantly. 

The Amended APA (Link Mentioned in the Tweet), which reflects these and other agreed-upon terms, has made the UCC comfortable with the transaction.

To address the risk of the transaction not closing, the UCC included a “toggle” provision in the plan that automatically allows Voyager to self-liquidate if the Binance.US transaction is unsuccessful.

Related Reading | Ripple Doubles Down On Crypto’s Real-World Utility

FTX Eyes Celsius’s Assets After Successful Voyager Bid

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According to reports, cryptocurrency exchange FTX, run by crypto millionaire Sam Bankman-Fried (SBF), is thinking about purchasing assets from the insolvent lender Celsius Network in order to save it.

The announcement coincidentally came the same day that Alex Mashinsky tendered his resignation as CEO of Celsius.

“I regret that my continued role as CEO has become an increasing distraction, and I am very sorry about the difficult financial circumstances members of our community are facing.”

By purchasing Celsius’s assets, FTX would be signaling its intention to salvage the loan company, just like FTX US did for Voyager when it secured the winning bid of almost $1.4 billion.

FTX’s previous interest in Celsius

Bloomberg reported on Bankamn’s interest in Celsius Network based on information from a source familiar with SBF’s deal-making. But as of this writing, neither side has released an official comment.

It was learned on September 22 that FTX was in talks with investors about raising $1 billion. If successful, this funding would allow the exchange to maintain its $32 billion value despite the bear market.

Celsius announced a $1.2 billion loss at the halfway point of 2022 and declared bankruptcy. Reuters initially reported in August that Ripple was interested in buying the assets of Celsius, but that interest has since diminished. Brett Harrison has resigned from his position as president of FTX US and will shortly take on an advisory role as part of what looks to be a big reorganization effort.

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FTX Eyes Celsius’s Assets After Successful Voyager Bid 3

Fried’s digital asset exchange, FTX US, which was created by billionaire Sam Bankman, won the bidding war for the assets of the shuttered cryptocurrency company Voyager Digital Ltd.

The agreement is worth around $1.4 billion, according to a statement published by Voyager Digital on Monday in New York, which is made up of an “additional compensation” of about $111 million and the $1.3 billion market value of each cryptocurrency held by the bankrupt business.

Customers will be allowed to transfer to the FTX US platform after the bankruptcy process is over, according to Voyager, who also announced that the acquisition deal would be filed to the court on October 19 for approval.

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 5

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.

Voyager adopts XRP, here’s what it means

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Voyager

Voyager is a U.S.-based cryptocurrency exchange platform. It is still quite a young project (it’s been online since last October only) founded by Stephen Ehrlich, Philip Eytan and Oscar Salazer (who is famous as an Uber co-founder) and Gaspard de Dreuzy.

It’s an exciting platform (more on that later) but it’s still somewhat limited as it’s available only in a handful of states within the US (Wisconsin, Pennsylvania, Montana, Missouri, Massachusetts, Kentucky, Illinois, California, and Arizona) but it’s pursuing approval in all 50 states as well as overseas.

The platform includes a mobile app, but it’s available only for Apple mobile phones. That obviously leaves the Android market out of the equation.

Another interesting feature in Voyager is that it allows you to buy cryptocurrencies using your own fiat money, by linking your card or bank account into your Voyager account which is not that common.

Most cryptocurrency exchanges in the web are crypto-to-crypto, which means that there’s not much point in joining them unless you already own some digital assets, but you can’t buy them with your local currency except for a handful of platforms.

So if you’re interested in getting a piece of the XRP action, Voyager could be precisely what you were waiting for. It’s commission-free as long as you use USD to pay for your tokens. And XRP is available at Voyager since last Wednesday.

Ripple’s XRP.

XRP is the cryptocurrency native to Ripple’s blockchain technology. It’s not meant to be a retail currency (like Bitcoin or Litecoin, etc.) but to be a means of exchange that can eliminate global transactions between banks, remittances services, and other traditional financial institutions. As such, it’s unique in the crypto verse because it’s backed up by a private company (Ripple).

Also because that company is trying to build up the coin’s value through real-life use cases and authentic demand instead of the speculative pressure that still drives the cryptocurrency market, and it’s succeeding if you take into account that XRP was the most profitable coin during 2017 (the one year in which almost every token was profitable) and it’s been growing in terms of market capitalization.

Starting to trade in XRP is quite easy if you choose Voyager. All you need to do is to download the app (Apple, only for now). Then you register, open your trader’s account and fund it. You can start with as few as USD 10.

As we write this, XRP is trading at $0.3153, and it’s ranked third by market capitalization. 41,365,634,610 XRP tokens are in currently in circulation with a billion more each month, according to the terms of Ripple’s monthly escrow contract (the company still owns most of the tokens).

So if you’re in the iPhone camp and are interested in joining the cryptosphere as an investor (not only in XRP, Voyager supports several other assets), it’s probably never been easier or cheaper. Just get the app and start doing your thing.

You can find further information at investvoyager.com if you’re a US resident. So welcome to Crypto and have happy hunting!

Image courtesy of Pixabay.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.