Voyager, the popular digital asset broker, is in the middle of bankruptcy proceedings, and on-chain data shows that the company’s assets are on the move. According to transaction records, around $154.4 million worth of USDC was transferred from Coinbase to the shuttered exchange’s “Voyager 1” Ethereum wallet this month.
Web3 analytics firm Arkham Intelligence confirmed in a tweet that Voyager has been selling off assets “at a rate of around $100M/week.” The firm also noted that the company had “$700M in two very large wallets.” According to Arkham, the Voyager wallets contain $268 million in ETH, $236 million in USDC, and another $77 million in SHIB.
Despite the fact that regulators have objected to a proposed buyout of Voyager by Binance.US and expressed concerns that Voyager’s plans to sell its crypto may violate securities laws, the transfers may be in line with court stipulations. In a court order dated August 5, 2022, Voyager was previously allowed to liquidate cryptocurrency from customer accounts with negative USD balances and sweep cash held in third-party exchanges.
When asked for comment, Voyager did not immediately respond.
The news of Voyager’s asset transfers comes as the digital asset broker continues to struggle with bankruptcy proceedings. In June 2021, the company filed for Chapter 11 bankruptcy protection in the Southern District of New York, citing a “rapid decline” in its business caused by the pandemic.
At the time of its filing, Voyager reported that it had $1.3 billion in total assets, including $743 million in cash and cash equivalents, $400 million in digital assets, and $150 million in other assets. The company also reported having $1.2 billion in total liabilities, including $1.1 billion in customer obligations.
Since then, Voyager has been trying to restructure its debt and reorganize its business, but the process has been complicated by a number of legal and regulatory issues. In addition to the objections from regulators to the Binance.US buyout, the company has also been accused of mismanaging customer funds and of violating securities laws.
The asset transfers may be part of the company’s efforts to restructure its debt and reorganize its business. However, it is unclear how much of the transferred funds will be used to pay off creditors or how much will be used to fund the company’s operations.
It remains to be seen how Voyager will resolve its bankruptcy proceedings and whether the asset transfers will be enough to help the company get back on its feet. In the meantime, the asset transfers are a reminder of the precarious state of the digital asset industry and the need for greater regulatory oversight.
