Meanwhile, on-chain activity for Bitcoin had dropped 13% in early July from the peak in November.įor Telvin Hodo in Georgia, not having access to the money in his Voyager account could jeopardize his recent home purchase.

The total balance on exchanges has fallen more than 20% from a Jan. The platform has about $1.3 billion in crypto assets.Ĭrypto traders who can still pull their money off platforms are doing so quickly. But the company made clear in its plan to exit bankruptcy that account holders will be “impaired” by the Chapter 11 process, which means they probably won't get back all that they're owed. Voyager only just filed for bankruptcy and many legal questions remain unanswered. In this case, investors may believe an impression that the system has failed, leading to a desire to exit.” “In some ways, when investors suffer these kinds of losses, similar to when a bond goes to zero, it can feel like the system is broken. “This type of downside risk can be pretty brutal,” said Mike Bailey, director of research at FBB Capital Partners. The Voyager implosion is the latest debacle is what is now being called a crypto winter. Lenders like Celsius Network, Babel Finance and Vauld have suspended withdrawals, while firms such as Coinbase Global Inc. The recent crypto plunge, with Bitcoin down about 70% from its peak, is fueling widespread financial troubles for companies involved in the space. I'm not going to invest on another platform. “I just don't understand how this could be legal.

He knew investing in crypto came with risks, but he never expected the platform to collapse. Now, his holdings are worth about $6,900 and he doubts he'll even be able to get that back. He saw ads for Voyager at the school's basketball games and eventually invested about $15,000 in Bitcoin on the platform. Aaron Selenica, 21, says he “fell into the crypto craze” last fall after hearing about Bitcoin from his friends and joining the University of Connecticut's crypto club.

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