Voyager Digital has $725 million in various currencies despite ongoing liquidations that began in September 2022.
The lender’s balance follows a series of token transfers to other crypto firms to pay off former clients in liquidation auctions.
Voyager Digital Asset Transfers
The troubled cryptocurrency company has transferred 158k ethereum (ETH), 5.9t SHIB, 123m Voyager Tokens (VGX), 36m Polygon (MATIC) and 2m Chainlink (LINK).
After these transfers, Voyager now has $725 million worth of coins.
The move has led industry analysts to speculate about the fate of Voyager Digital and its possible effects on the cryptocurrency market. Several companies and wallets linked to the failing exchange have been transferring money to and from multiple exchanges.
The collapse of Voyager Digital
The collapse of Voyager Digital was a blow to the cryptocurrency market. In July 2022, the lender stopped accepting client deposits and withdrawals after Three Arrows Capital (3AC), a defunct crypto hedge fund, failed to repay a USDC loan of 15,250 bitcoins (BTC) and $350 million. This action hastened Voyager’s downfall amid growing legal and regulatory troubles.
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Following this, the bankrupt crypto lender announced that starting September 13, 2022, it would hold a liquidation auction to address its financial challenges.
Sam Bankman-Fried’s attorney negotiates new bail deal
On Dec. 13, Sam Bankman-Fried, whose cryptocurrency businesses were closely tied to Voyager Digital, faced a count of eight. accusation accusing him of defrauding FTX clients, investors and Alameda research.
In a recent trial update, his lawyers claimed they were getting closer to a deal with US prosecutors on modified bail conditions for the arrested cryptocurrency exchange FTX founder.
In a letter delivered late Friday to federal court in Manhattan, Fried’s attorney, Christian Everdell, said both sides believed they were “close to a resolution.” They anticipated formally proposing more caps next week.
