Not a crypto guy but this cannot be good

[TeamAmerica]

And how were people supposed to know they were not FDIC insured like the company told them they were?



Will it be your fault when the bank you use takes all your money? Or your fault when whatever broker (E-trade, Fidelity, IB etc) has your retirement money goes BK? How do you know they are FDIC insured like they claim to be?





The crypto being bought isn't what went to zero, the broker they were using to buy crypto went bankrupt.

This one is unique for sure. First voyager said customers Cash deposits were FDIC insured b/c they were held at MCB. But MCB didn't go bankrupt so why would the FDIC bail out $300M held in one single account (voyager kept record of which customers the $300M belonged to - not the bank). Maybe the FDIC will help out the cash account holders but i doubt it. but yes it sucks for those that still had lots of value in their crypto.

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[OrangeBlood]

Yeah that all around sucks. It’s not like the guy put his life saving into Poocoin[emoji23]


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He would of been better off, Poocoin is decentralized and he would of held his coins in his own wallet.

People have been screaming for months to get your money off of centralized exchanges

[RiverRat1]

Was there a clause in Voyager saying they could keep people's assets if they go bankrupt?

Do other brokers have that clause?


OrangeBlood - Why are people screaming to get money off exchanges?

[Burnadell]

Was there a clause in Voyager saying they could keep people's assets if they go bankrupt?

Do other brokers have that clause?


OrangeBlood - Why are people screaming to get money off exchanges?

First, deposits are liabilities of the institution, therefore they are frozen upon filing bankruptcy until they come out of Chapter 11.

Second, if I read the article correctly, the clients bought cryptocurrency from Voyager. At that point the clients assist were not deposits; they were cryptocurrency held by Voyager...therefore not client's deposits. I don't understand the whole crypto thing, so I may be wrong.

Third, Voyager is not a bank, therefore the FDIC would not insure them against anything. FDIC only insures US bank deposits from BANKS who are members of FDIC.

[RiverRat1]

First, deposits are liabilities of the institution, therefore they are frozen upon filing bankruptcy until they come out of Chapter 11.

Second, if I read the article correctly, the clients bought cryptocurrency from Voyager. At that point the clients assist were not deposits; they were cryptocurrency held by Voyager...therefore not client's deposits. I don't understand the whole crypto thing, so I may be wrong.

Third, Voyager is not a bank, therefore the FDIC would not insure them against anything. FDIC only insures US bank deposits from BANKS who are members of FDIC.

So is this the same for other brokers like Coinbase? What about brokers one can buy stocks and cryptos through like Interactive Brokers, Robinhood, and WeBull?

[Tom]

Scam scam scam- some fat dog is sittin’ purty right now smoking a big cigar and drinking a martini with a grin on his face…..

Correct. Millions lost for many is millions gained for others. The money does not evaporate, just changes hands.

[Burnadell]

So is this the same for other brokers like Coinbase? What about brokers one can buy stocks and cryptos through like Interactive Brokers, Robinhood, and WeBull?

I have no idea about those firms; have had no reason to research them, but if they are a member of SIPC, then the clients assets are protected up to $500,000 including $250,000 for cash. Money market accounts are not cash but rather securities. SIPC does not protect against declining market values, only to replace the securities to the client if they were removed by the broke firm.

Here ya go: https://www.sipc.org/for-investors/what-sipc-protects

I found this: "Cryptocurrency is not legal tender and is not backed by the government. Cryptocurrency is not insured or guaranteed by the subject to Federal Deposit Insurance Corporation (“FDIC”) or Securities Investor Protection Corporation (“SIPC”)."

[OrangeBlood]

Was there a clause in Voyager saying they could keep people's assets if they go bankrupt?

Do other brokers have that clause?


OrangeBlood - Why are people screaming to get money off exchanges?

Because if a CEX goes bankrupt, its technically their money and they will take it and theirs nothing you can do about it. Some crypto exchanges are "secretly" insolvent, meaning they don't have enough money to pay back all the balances on their exchange, so they'll go bankrupt and all the money you have on a CEX will be lost, if you're on the wrong one.

Keep your coins in a wallet, like metamask, or a cold storage wallet like ledger. If you want to make a trade on a CEX, that's cool, but don't leave all your money on their.

Basically, if you have your crypto currency on a centralized exchange, you do not own that coin.

[bullets13]

Looks like some of the scams members on here were running a while back

Yup. A lot of members on here lost a lot of money. And a few of us who advised them against it were shot down and criticized.

[KoonceCrushed]

How will customers recover proof of their crypto purchase? Will they transfer their crypto funds to another "broker". Assuming this company is just purchasing on a crypto exchange? I have some crypto with Robinhood just for FOMO. Just an app on my phone. Wonder what I will do when they go tats up.

Exchanges/Brokers hold the crypto, you do not.

If you want to eliminate this risk of Coinbase, Binnacle, etc. You need to transfer it to your hardware wallet.

Not your keys not your crypto.....

[rberg]

Go back and look at what was happening during the 1920s.
People borrowed to buy stock to get rich with no work.
Then the market collapsed and the country went into the Great Depression.

[Graysonhogs]

Would it be fairly easy to research? I mean google and duck duck go has a lot of info. Anyone can claim what ever they want but the truth is out there

Not fairly easy when you can find 75 different articles about the same thing with different info . I just saw where duck duck go was supposedly a Chinese data mining op. Wouldn't surprise me. 90% of America is too busy on TikTok making a guy with a bottle rocket up his butt go viral to do any real research.

[rtp]

See the statement on the top banner. This has been on the exchange and continues to be on the exchange. Someone needs to go to jail if people do not get at least their cash back.


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[RifleBowPistol]

That's some wise investing method there. Never heard of this company, want to try this crypto thing, so I am going to dump 70% of my savings into this company. Should of just gone all in, send it.

[OrangeBlood]

Dear Matthew,

Last Friday, Voyager presented what are referred to as “First Day Motions” as part of our Chapter 11 filing to the U.S Bankruptcy Court. We were granted the relief requested. This was the first step in the restructuring process, which is intended to address the company’s financial circumstances and allow us to resume normal operations.



We know you have many questions, and we are moving swiftly to give you answers. Below and in this more detailed blog post, we’ve tried to respond to your most pressing inquiries.



How does the reorganization process impact my cash?



We are working to restore access to USD deposits. Customer USD belongs to customers and will return to those same customers, subject to a reconciliation and fraud prevention process.



Is the USD in my account FDIC insured?



Yes. USD in your Voyager cash account is held at Metropolitan Commercial Bank of New York (“MCB”) and is FDIC insured. That means you are covered in the event of MCB’s failure, up to a maximum of $250,000 per Voyager customer. FDIC insurance does not protect against the failure of Voyager, but to be clear: Voyager does not hold customer cash, that cash is held at MCB.


What will happen to the crypto in my account?


Voyager currently has approximately $1.3 billion of crypto assets on its platform, plus claims against Three Arrows Capital ("3AC") of more than $650 million (it fluctuates due to the exchange rate between Bitcoin and USD).

Under Voyager’s proposed reorganization plan, which is subject to change and requires Court approval, customers will receive a combination of the following, with the ability to select the proportion of crypto and common equity they receive, subject to certain maximum thresholds:

Pro-rata share of crypto;
Pro-rata share of proceeds from the 3AC recovery;
Pro-rata share of common shares in the newly reorganized Company; and
Pro-rata share of existing Voyager tokens.


Can you tell me how much of my crypto I’ll get back?



At this stage, we are proposing that customers will receive their crypto as described above. However, the exact numbers will depend on what happens in the restructuring process and the recovery of 3AC assets. We understand how important this issue is and will provide updates as soon as possible.



What’s next?



Our next Court hearing is on August 4, 2022, where we will seek further relief to stabilize operations and further advance the restructuring. As the restructuring continues, you may receive notices with updates on additional legal and procedural milestones. This includes a Notice of Commencement, a required, customary legal document indicating that Voyager and its subsidiaries have filed voluntary petitions for Chapter 11 reorganization. This notice requires no action on your part.



Further details on the restructuring, including relevant court filings, is available at https://cases.stretto.com/Voyager, or by calling +1 (855) 473-8665 (U.S. toll-free) or +1 (949) 271-6507 (international).



We can’t thank you enough for your continued support. We’ve worked hard to share everything we can at this point; you have our continued commitment that we will keep you updated. We are moving through this process as quickly as we can.

Regards,
Team Voyager