Voyager Allows Creditors to Withdraw 35% of Crypto Holdings between June 20 and July 5, 2023
Voyager Digital, a crypto brokerage firm that filed for Chapter 11 bankruptcy in 2022, is gearing up to resume partial user withdrawals. However, concerns arise as on-chain data reveals that the troubled company has transferred tokens out of its hot wallet, raising alarm bells.
In another development, Celsius Network announces a list of altcoins it plans to sell on July 1st, prompting caution among investors.
Potential Crypto Rug Pull Risks Arise with Voyager’s Withdrawal Process
Massive altcoin transfers observed in the wallet address 0x500a746c9a44f68fe6aa86a92e7b3af4f322ae66 linked to Voyager, while creditors can withdraw 35% of their crypto holdings from June 20 to July 5, 2023.
Troubled crypto firm moves approximately 350 billion Shiba Inu coins (worth around $2.6 million) in multiple transactions, including a significant transfer of 70 billion SHIB (worth approximately $537k) from the hot wallet, while SHIB trades at an average price of $0.0000073.
Shiba Inu Coin, the second-largest meme cryptocurrency, records a 7% increase in price over the past week. However, concerns arise as the anticipated Voyager Users’ withdrawal could potentially intensify selling pressure on the coin.
Source: Etherscan
Pressure to surge ahead in selling intensifies
After linking its wallet to Voyager, a crypto firm executed a significant transaction, moving approximately $180k worth of Polygon (MATIC) tokens, totaling 279.79k tokens.
Prior to this substantial movement, the firm had made minor transfers of MATIC tokens. Fortunately, MATIC experienced a 7% price surge in the past 24 hours, offering some respite from the previous downward trend. However, the impending recovery efforts by Voyager users are likely to trigger a subsequent price drop.
According to court filings on June 14, 2023, Paul Hage, Voyager’s bankruptcy plan administrator, announced that the Voyager app will display the withdrawal amount for users by June 15. After a 30-day period, clients can withdraw crypto assets through the app or request a cash payout.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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