Voyager in a slump amidst market crash!
The market crash that occurred on May 12th 2022 was a disastrous one. All the cryptocurrencies have faced terrible circumstances due to the catastrophe caused by the market implosion. Bitcoin lost almost 70% of its value from its peak in November. Terra’s USD and its sister token LUNA lost almost 99% of their value, being one of the major reasons for the prolonged market crash. In the market crash, Voyager Pvt LTD, a crypto lending company also entered the slump and went ahead to suspend its services.
On July 1, the crypto lending company went on to freeze accounts of its customers and filed Chapter 11 Bankruptcy. The crypto lending platform was in a major soup majorly due to the loans that it had given to hedge fund company Three Arrows Capital.
Following the collapse of the Terra ecosystem in May, 3AC suffered along with the rest of the cryptocurrency market. Significant cryptocurrency lender Celsius Network and 3AC were both alleged to have filed for bankruptcy at the end of June. As a result of their failures, several of the big crypto lenders and funds appeared to be exposed to one another, which caused a domino effect to spread throughout the industry. Last week, 3AC’s creditors filed a petition for the company’s bankruptcy in a British Virgin Islands court.
Voyager’s Customers in disbelief and sorrow!
There are many customers who are adversely affected by the suspension of the activities by Voyager. Some of them have lost their life savings and are currently in a slump for no mistake of theirs. Let’s look at few case study of Robert – a customer of Voyager!
In March 2020, Robert first learned about Voyager Digital. He made the decision to try the cryptocurrency broker, just like many others. The platform was simple to use. It provided him with a substantially higher annual percentage yield (APY) than a conventional savings account of up to 9%. It made the assertion that it was covered by FDIC insurance. And how awful could Voyager be, he reasoned, given that it is a publicly traded business on the Toronto Stock Exchange. According to Robert, who requested anonymity due to privacy concerns, he finally spent six figures, or 70% of his funds, on Voyager.
But as on date, Robert has lost most of his savings, as the crypto lending platform won’t let them withdraw any of their money and it also comes to light that Voyager is not FDIC-insured. The banking partner of Voyager is FDIC-insured, which makes the customers like Robert feel cheated.