Crypto Broker Voyager Digital Files for Bankruptcy - Slashdot

Posted by msmash

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  Can't help that they did that NBA promotion where they gave anyone that signed up for an account $100 in BitCoin (mine is now worth like $35).

• Hedge funds: meh, we lost a few million dollars. Have to recoup them elsewhere.
  Average crypto enthusiast: there goes my savings. Have to find a second job.

  Waiting to hear more about Venezuela and their huge betting on crypto.

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    "Crypto Hedge Fund" is a contradiction in terms. As unregulated (Sorry, decentralized!) hedge funds are inherently one step away from bankruptcy at all times.

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      I do not quite understand your comment. This seems like a perfect match to me: Crappy investment on top of crappy investment.

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        You make.. A good point... Garbage In Garbage Out.

• Quote from the header, ""This comprehensive reorganization is the best way to protect assets on the platform and maximize value for all stakeholders, including customers," Aren't customers literally at the bottom of the food chain? IRS/state tax are at the top, followed by employee paychecks, and then lenders. So that Sam guy will be most likely get his money back as I'd bet he made himself a "senior" debt. And then the other lenders will get some of their money back, and then of course lastly customers wil

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    "Aren't customers literally at the bottom of the food chain?"

    Generally, yes. Unsecured debts are second last, only ahead of shareholders. All this business about maximizing value for a stakeholders is just boilerplate nonsense spewed out during the destructive unwinding of such an entity. It's horseshit, and everybody knows it.

  • fdic! when an bank goes under you get your funds b

    fdic! when an bank goes under you get your funds back up to X in all cases

    • Re:

      This is not a bank.

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      Voyager advertised their customer accounts as being FDIC-insured. That claim is even still on their web site.

      SPOILER: they're not.

      Voyager execs are going to prison.

      • Re:

        That FDIC-insured notice only applies if the Metropolitan Commercial Bank, the bank Voyager partnered with, goes under.

        Per https://www.mcbankny.com/fdic-coverage-available-to-voyager-customers [mcbankny.com]

        Metropolitan Commercial Bank maintains an omnibus account specifically designated for the benefit of Voyager customers. The omnibus account holds US Dollars only. It does not hold cryptocurrency or any other asset. Voyager is responsible for maintaining records to determine the ownership and amount of each of its custo

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          Their marketing material says otherwise.

          "Through our strategic relationships with our banking partners, all customers’ USD held with Voyager is now FDIC insured. That means that in the rare event your USD funds are compromised due to the company or our banking partner’s failure, you are guaranteed a full reimbursement (up to $250,000)."
          https://invest-voyager.medium.... [medium.com]..due to the company's failure your funds are FDIC-insured...

          Here's a much better breakdown by a banking expert: https://www.co [coppolacomment.com]

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            USD you paid in, yes, because they are actually kept at MCB and your second link even quotes that these go into an account at MCB, not at Voyager. Crapcoins, no and anything else were you told Voyager to do something with your USD, no again. Sorry, all gone. Or rather, duh!, told you so.

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              MCB is not responsible for Voyager customer funds, Voyager is. Voyager customers ARE NOT customers of MCB. MCB even put out a release yesterday stating that to dispel any confusion. Zero Voyager customer dollars are FDIC-insured.

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            Sure, if you deposit US Dollars, and keep it as US Dollars, then you get FDIC coverage because those US Dollars are held in an account covered by FDIC insurance.

            As soon as you use those dollars to buy crypto, that insurance winks out of existence and you're on your own. Just like if you bought stocks through Fidelity or E-trade and the company you bought stock in goes to $0.00.

            This isn't a hard concept. FDIC does not protect speculative horseshit investments, and never has.

            • Re:

              Wrong. You are not a customer of MCB, you are a customer of Voyager. MCB's FDIC insurance does not apply to you. MCB and Voyager have now made this explicitly clear, this isn't speculation or guessing. Voyager customer deposits are gone. In a few years you might get a few pennies on the dollar after all the other creditors get paid their pennies on the dollar.

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                Then they can have a fun time in court, because according to other people they had language on their web site saying that deposits were secured with FDIC insurance. That's fraud.

                And you are absolutely correct that I am not a customer of MCB, nor am I a customer of Voyager or any other bullshit crypto money furnace. I'm working with the information presented in this discussion. I have no horse in this race, other than extracting entertainment value of watching a bunch of people that were told exactly what

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          Well, being able to read gives you certain advantages in this world. Apparently some people are not familiar with that idea though.

          Also, who anybody could think a crapcoin scam could even get FDIC insurance is beyond me.

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      FDIC protection means you have to keep to certain regulation. A "Crypto Hedge Fund" following regulations is like saying you're certain that the trenchcoated gentleman on the corner is certainly selling completely legal medicines.

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      Yeah, because FDIC covers crypto-bros all of a sudden?

      In order to be FDIC insured, you have to have a bank charter. None of these crypto dipshits have that.

• Seems like we will need to start accumulate them in, say, a "Crapcoin scam operations collapsed today" posting.

  • 1 hidden comment
  • It seems people forget history all the time. The dotcom bubble. The 2008 housing bubble. Many here predicted this would happen; crypto bros kept defending it even now reality has set in.

    • Re:

      Yep. And some of these morons will keep defending it after they have lost all their money. Many people are incapable of learning because they are incapable of admitting having been wrong.

• All about collapsing companies and crypto . people loosing their shirts.
  the whole thing will be collapsed into a pile of dust in no time at all.

  there's no bouncing back when investor confidence is gone.
  good riddance.

  • Re:

    You know what? You're right: it's almost as if this cryptocurrency thing was at best a fad, at worst a scam. Whodathunk it eh? I mean nobody could have seen that coming in a million years...

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      At least when all the crypto scams collapse there will still be NFTs to invest in!:-)

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      What I did not see coming was that this would go for so long. Well, I did not before the pandemic gave me an update on the prevalence and magnitude of human stupidity.

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    You keep using that word "Investor", I don't think you know what that means.

    (Yes I'm being sarcastic, but reading 'investor' in the same sentence as 'crypto coin' always makes my head hurt)

• Good. (Score:5, Insightful)

  by Gravis Zero ( 934156 ) on Wednesday July 06, 2022 @12:41PM (#62678496)

  I'm glad these cryptocurrency companies are going under because they produce nothing (it's literally just numbers which are purely conceptual) but waste a lot of electricity doing it.

  • Re:

    Wish we could also find the pump and dump scammers who pumped Crypto beyond all reasonable expectations.

    At least a few of the promoters knowingly sold/promoted/advised people. Even if we cant jail them, we should at least claw back their ill gotten gains, to serve as a warning to the next pump and dump artists.

• Chapter 11, IIUC, is for companies that have reasonable assets with which to pay off their creditors.

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    Well, they try to cam the bankruptcy court as well. So their normal modus. I somehow doubt the will get that chapter 11 protection. But filing for it lets them keep up the charade a little bit longer.

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    Probably to muddy the waters a little bit longer to allow the connected people to get anything of value out of the company while they can. By the time this is kicked back for a Chapter 22, there will only be liabilities and the less-connected dummies will be left holding less than nothing....

    • Re:

      Sorry, meant to say this will probably be kicked back for Chapter 7 (or whatever the 'liquidation' haha, chapter for this type of company may be.)

• ...mine a few more digitals?

  ROTFLMAO! Oh, crypto's *so* much safer than government money....

• Interesting how some phrases accidentally let slip what the real priority of some companies is (Notice how "customers" is added as a afterthought).

• Isn't this where some dipshit crypto-bro comes in and says to "buy the dip and HODL!!" or some such bullshit because they are desperate for other people's money to bail out their out-of-position speculation that paid off earlier speculators that got the fuck out when nobody was looking?

  Waiting for further dominos to tip in the coming weeks, and cause some real financial indigestion amongst the easily bilked...