Gemini Welcomes Voyager Customers to Withdraw Funds After Bankruptcy Filing
Gemini, the prominent US cryptocurrency company, has extended a helping hand to customers of Voyager who were left stranded after the company filed for bankruptcy last year. According to a blog post on June 25, affected Voyager customers now have the opportunity to withdraw their funds through the Gemini platform until July 23. As the recovery process begins, customers are given a 30-day window to retrieve their trapped funds from Voyager.
To initiate the withdrawal, Voyager customers can easily create an account on Gemini. In an effort to attract more customers, Gemini has announced a promotional welcome offer of $5 in BTC for new US customers joining from Voyager. The blog post states:
“We are pleased to offer a promotional welcome to all Voyager customers who join Gemini. New US customers from Voyager will receive $5 in BTC after they sign up and become verified within 30 days of opening their account.”
Gemini has emphasized that customers can only withdraw from a selection of over 70 crypto assets supported on their platform. Assets not supported by Gemini will unfortunately be lost.
As previously reported, Voyager Digital, a crypto broker, filed for bankruptcy protection in July 2022. In September 2022, FTX US won an auction for Voyager’s assets, offering $1.4 billion. However, the plan was derailed when FTX US filed for bankruptcy in November 2022.
Subsequently, Binance stepped forward with a $1.2 billion deal to acquire Voyager’s assets. However, the deal encountered multiple revisions and obstacles from US regulators. Eventually, in April 2023, Binance withdrew from the agreement, citing regulatory constraints.
In May 2023, the court finally approved a bankruptcy plan for the self-liquidation of the platform. The company estimates that customers will recover approximately 36% of the amount owed, with the potential for increased recovery if an ongoing dispute with FTX over a $445.8 million loan repayment is resolved.
FTX sued Voyager for $445.8 million in January 2023, claiming that loan repayments made in 2022 should be returned due to FTX’s subsequent bankruptcy. Voyager is currently holding $445.8 million to repay FTX. It was initially anticipated that the sale to FTX would allow creditors to retrieve 72% of the value of their accounts. However, under the current plan, only 36% of the recovery is expected.
According to the Voyager website, the Voyager app is now open to begin the initial recovery process. Customers can now withdraw their funds during the ongoing 30-day crypto transfer window. Any crypto assets that remain on the platform after this window will be liquidated into cash.
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