Uncovering Voyager Digital’s $121 Million Crypto Sell-off
According to blockchain transaction data provided by Arkham Intelligence, Voyager Digital reportedly sold off at least $121 million of its cryptocurrency holdings to exchanges in February.
The company has also received $150 million in USDC stablecoins in the past four days, likely proceeds from sales. While this sell-off may be an attempt to pay off creditors and address financial difficulties, it could also signal selling pressure for Voyager’s largest non-stablecoin crypto holdings.
What Was The Reason for the Sell-Off?
The recent asset sales by Voyager come as the company files for Chapter 11 bankruptcy protection and agrees to sell itself to Binance.US after an auction. However, the deal has faced scrutiny from federal and state regulators, with the U.S. Securities and Exchange Commission (SEC) investigating Voyager’s VGX token as an unregistered securities offering.
The FTC is also probing Voyager’s alleged deceptive and unfair cryptocurrency marketing practices. Despite these challenges, Binance.US has confirmed that the acquisition will proceed.
Current Assets of Voyager
According to data from Arkham Intelligence, Voyager Digital holds a variety of cryptocurrencies in its addresses, including Ethereum (ETH), Shiba Inu (SHIB), VGX, LINK, Fantom (FTM), and Bored Ape (APE) tokens.
These holdings are collectively worth $697 million, with $236 million in USDC stablecoin. Some of Voyager’s largest non-stablecoin holdings include 166,223 ETH worth $271 million, 6.2 trillion SHIB tokens worth $77 million, and 148.4 million VGX tokens worth $63 million.
Arkham Intelligence: A Background
Arkham Intelligence is a blockchain intelligence firm that provides insights on cryptocurrency markets and activity. The company uses advanced analytics to track and monitor the movements of cryptocurrencies and tokens across different blockchain networks, providing real-time data and insights to its clients.
The crypto community will be closely watching Voyager’s next moves, especially as its largest non-stablecoin crypto holdings could face selling pressure in the coming weeks. While the regulatory challenges to the Binance.US deal add further uncertainty, the exchange’s confirmation that the acquisition will proceed suggests that Voyager’s sale may provide an opportunity for other players to enter the crypto brokerage space.
Voyager’s financial struggles highlight crypto businesses’ challenges as they navigate the volatile and rapidly evolving crypto market.