Crypto Community Suspects Imminent Sell-off After Voyager’s Token Transfer to Coinbase

Jimmy Aki
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Defunct crypto Lender Voyager Digital has raised concerns about a possible sell-off after transferring a substantial amount of tokens to Coinbase.

Voyager Moves Tokens in Short Period

Recently, bankrupt crypto Lender Voyager Digital made headlines as it transferred a substantial amount of tokens to Coinbase, one of the largest cryptocurrency exchanges globally.

In the past day, a significant divestment of cryptocurrencies amounting to approximately $9.4 million has occurred.

The divestment includes 3,000 ETH, 200 billion SHIB, around 2.3 million MANA, 932,000 SAND, 135,000 APE, and 1 million BAT, all transferred to Coinbase on the Ethereum blockchain.

These transfers were executed with a one-hour gap between them, as documented by Etherscan.

Meanwhile, in a related development reported by PeckShieldAlert, Voyager also moved 200 BTC, valued at $5.8 million. In addition, a portion of this, specifically 10.3 BTC, has already been deposited into the Binance Deposit address (1BXaY) within the same 24-hour period.

Furthermore, PeckShieldAlert noted that Voyager Digital received approximately 21 million USDC from Coinbase during the last day.

Dune Analytics data indicates that Voyager’s total crypto asset holdings currently stand at roughly $92.90 million.

The collective movement of these assets has raised intriguing inquiries about the strategic intentions of Voyager, especially given its challenging financial state.

Additionally, this abrupt token reshuffling has sparked discussions about the possibility of a liquidation event. Nevertheless, insiders have suggested that Voyager might be consolidating tokens from multiple addresses into a central one.

The notion of a potential sell-off is substantiated by Voyager’s consistent trend of divesting crypto assets to Coinbase, a pattern that has been ongoing almost daily since February 14, 2023.

On-chain analyst Lookonchain reveals that Voyager undertook these transactions using several cryptocurrency tokens, including Ether, Shiba Inu, and Chainlink.

Notably, this involved transferring 2.24 trillion $SHIB tokens worth $28 million, 28.5 million Voyager Token (VGX) tokens worth $12.85 million, 15,635 ETH tokens valued at $25 million, and 640,000 Chainlink (LINK) tokens valued at $4.74 million, amongst others.

Furthermore, Lookonchain alleged that Voyager received a minimum of $100 million in USD Coin over a three-day period, starting from February 24.

Voyagers Struggles After Bankruptcy

Voyager, once catering to 3.5 million clients and holding crypto assets valued at $6 billion, declared bankruptcy on July 5, 2022, following the collapse of Three Arrows Capital.

Adding to the saga, FTX US intended to acquire Voyager’s assets in September 2022. However, this plan was derailed by the unexpected downfall of FTX.

Following this, Binance.US had plans to purchase $1 billion worth of Voyager’s assets in April 2023. However, these plans were abruptly abandoned at the final juncture.

In a bid to address these complex issues, Stephen Ehrlich, Voyager’s CEO, announced the commencement of a voluntary financial restructuring procedure aimed at protecting the assets within the platform.

In May 2023, Judge Michael Wiles sanctioned a bankruptcy proposal that granted customers roughly 36 cents per dollar of their claims.

Despite this approval, customers voiced discontentment regarding the bankruptcy procedure and its outcomes, citing worries about expenses, attorney fees, supervision, and the partial refunds they would receive.

Acknowledging the financial constraints, Judge Wiles recognized that Voyager’s inability to fully reimburse its clients stemmed from a shortage of funds.

Within the endorsed liquidation strategy, Voyager compensated customers with approximately $1.33 billion worth of cryptocurrency assets, effectively concluding its Chapter 11 bankruptcy reorganization endeavors.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.