Losing millions of dollars because of the promise of 'super-profitable digital currency'

 Magnolia lost more than a million dollars accumulated over the course of 24 years believing in the promises of cryptocurrency company Voyager Digital.


CNBC reported that during the 5-hour bankruptcy hearing of cryptocurrency company Voyager Digital in a New York court in early August, Magnolia was the first customer to speak out about her bad experience.

She declined to give her full name but insisted there was more than a million dollars trapped in the platform. "This is the money I've saved for 24 years, including $350,000 to pay for my children's college tuition," she said. "Voyager Digital got people's trust and money but they didn't run the company properly. What we had to receive was the result of the company's irresponsibility with people's deposits. ".

Magnolia wants to know why Voyager is borrowing more money instead of cutting losses when the market is deteriorating, and whether CEO Stephen Ehrlich is continuing to receive salaries and bonuses when its customers are empty.

Voyager Digital token price dropped to 0.3 USD on August 16.
Voyager Digital token price dropped to 0.3 USD on August 16.

Poor victims

This woman is just one of Voyager's 3.5 million customers. It used to be a popular cryptocurrency lending platform, attracting many retail investors with the promise of double-digit annual returns. People like Magnolia deposit real money into Voyager and get tokens back. When the company declared bankruptcy, the token price plummeted, their assets were frozen.

Court records show Voyager has about $1.3 billion in crypto assets on the platform, $104 million in cash, and $650 million in loans to 3AC. While the amount of individual customers deposited into this platform is up to 1.8 billion USD.

One 32-year-old unnamed customer said he was witnessing "10 years of his life frozen on Voyager". And Donald A, who has about $31,000 stuck on the platform, said he didn't dare face his family to explain to them the lost money. "I wake up every night just to go up and down the stairs to reflect on my mistakes, wondering when this dark streak will ever end."

In a letter to CEO Voyager, a person named Redburn said: "I took all my savings to send to the company with the dream of one day being able to pay for my children's education and family life. But now My daughter's entire future is closed, I have to borrow every day to make the family live."

Christine Marcy, a retired woman living in Florida, said: "Beg the company to return the money I deposited, not the worthless tokens. Voyager's unscrupulous actions are causing many difficulties. both physically and mentally for millions of customers".

Indefinite

Voyager denies allegations related to the company's fraud, illegally misappropriating investors' money. They blame the collapse of the cryptocurrency market. Many hedge funds and companies defaulted on loans to lenders like Voyager. In particular, the Three Arrows Capital (3AC) fund announced bankruptcy and could not pay Voyager a debt of $ 650 million. However, some victims believe that this may be a trick for Voyager to get out of financial trouble, leaving customers to stay and bear the losses.

Many people said that when they deposit money into Voyager, they are explained that they are the owners of the tokens on the platform. But when the company goes bankrupt, they become creditors again. "I deposit money into the platform, not invest. Why do they take my money to do other things and now all my money deposited is frozen," one person asked.

Another victim, nicknamed Ginger Little, shared at the hearing that when she deposited money into Voyager, she was instructed to convert from USD to USDC. "They were vague, cheated on black people, didn't say if they would receive the promised profit by doing so. They also didn't tell me that USDC stablecoin is not the same as cash. I assumed Voyager admitted USDC was also entitled to it. FDIC (Federal Deposit Insurance Corporation)," Little said.

CNBC quoted the FDIC and the US Federal Reserve System Board of Governors as saying that they sent a letter to Voyager in July to warn the platform about false and misleading claims to users about its services. deposit.

Unprecedented step

The committee of unsecured creditors is working with Voyager to require the company to submit forms to customers, providing proof that they have deposited funds into the platform and have not been able to withdraw them. The expected target is the end of October and the refund could happen in November.

The commission said it was taking the "unprecedented" step of advocating for temporary payments to creditors with assistance during the company's bankruptcy filing. Some of the first customers are said to have recovered their funds from the platform, but subject to strict conditions.

Judge Michael Wiles granted eligible people access to $270 million in Voyager's cash at Metropolitan Bank. Those with USD in the account will be able to withdraw up to 100,000 USD within 24 hours through the Voyager app.

What about Voyage users

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