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Voyager’s Bankruptcy Filing Sparks Concerns of Customer Clawbacks

Published 03/02/2023, 11:39 AM
Updated 03/02/2023, 12:00 PM
Voyager’s Bankruptcy Filing Sparks Concerns of Customer Clawbacks

  • Voyager’s bankruptcy raises concerns among its customers about potential crypto investment losses.
  • The platform may enact customer clawbacks, potentially affecting around 32,000 users.
  • Shingo Lavine has urged involved users to form a community group to fight for their interests and prevent clawbacks.

Voyager Digital Ltd., a crypto trading platform, recently filed for Chapter 11 bankruptcy protection in the United States. The move has sparked concerns among its customers, who fear they could lose their crypto investments due to customer clawbacks.

Shingo Lavine, Voyager’s former Chief Innovation Officer, has warned that the platform could enact customer clawbacks under Chapter 11 bankruptcy rules, potentially affecting around 32,000 users. The news has sent shockwaves through the crypto community, with many now questioning the safety and security of their digital assets on the platform.

In response to the potential risk of clawbacks, Lavine has urged affected Voyager users to form a community group and take a unified stance against the company’s actions. He pointed to the success of a similar approach taken by Celsius Network customers, who prevented the company from changing the terms of its rewards program.

Shingo Lavine says;

With Voyager likely going after retail clawbacks, it may be worth organizing the community similar to @celsius around fighting them.

Lavine likely meant an alternative community group that focuses on the users’ best interests rather than one organized by Voyager itself. Such a group could collaborate to share information, lobby for fair treatment, and seek legal action if necessary.

According to one commentator, the process could be circumvented by withdrawing funds within the affected period, then paying those funds back to Voyager. However, this loophole was highlighted by industry experts, who pointed out that the clawback process only applies to funds held by Voyager at the time of the bankruptcy filing.

The post Voyager’s Bankruptcy Filing Sparks Concerns of Customer Clawbacks appeared first on Coin Edition.

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