What does this mean for your funds if you were a holder of Voyager Equity or if youve got money locked into Voyager? More importantly, what does this mean for The Wider crypto space, and what can we learn from it guys as always smash that the like button dont forget subscribe, as always, if you want to trade or buy any crypto, the two exchanges I currently use are by bit And Bitcoin links in description to check those guys out now, as you can see here, chapter 11 bankruptcy now remember: this is a voluntary petition for bankruptcy. Im gon na explain why that is important, so we have to give them a little bit of props for being a little bit proactive and filing chapter 11 bankruptcy. Now what this enables Voyager to do is to get their house in order. It stops the creditors from knocking on the door and say Voyager, give me money, give them some breathing room to figure out their insolvency, and this is where they have to go and figure it out. So Props, where its due and Im gon na really go into Voyager in this video, so Ive got to give them the credit at the Forefront to say. Okay, at least I made this move right, which is file for voluntary bankruptcy, admit youre in a bit of a mess and go fix it as opposed to the alternative, which is false bankruptcy. Once all your creditors have reached you, youve got nothing left all your customer deposits gone and theres zero, dont Quant right now.

What are we seeing going on well before that? I do want to share this with you Im not going to share all of it because I dont think its friendly for YouTube, but you guys can go over and check fat man, Terror on Twitter because you did share this whole thing, but in essence it gives You an idea of how many people are really hurt in this crypto Space by this kind of activity. I hate every second of this. The losses hurt right: 255k in usdc, literally everything I had Im a complete mess. I have 900 and then the last person said something which I cant share in YouTube, but you could probably use your imagination to see how distraught they are uh about losing their life savings, so just wanted to put that into perspective, because this is real lives. These are people who have put money into crypto and I have to give them the benefit out its similar to the UST scenario, where, when youre kind of leaving your money in some of these platforms and if its just cash and youve not put it into actually Loan, then you dont expect your funds to go right. If youve left some stable coins in there, you dont expect to lose that, but at the same time, Im going to come in hard on the people who are using these C5 platforms because you guys need to get educated as well. You need to learn and if you avoided Voyager but youre doing the same on another platform, count yourself extremely lucky, because the people who have lost funds on Voyager are gon na.

They would have paid for the lesson, but you get it for free. Just by watching this video and understanding that chasing yields on these platforms, where theyre promising you returns, which are too good to be true without doing your due diligence can and will get you right so lets try to catch up on whats going on and first we Got a nice Twitter thread from Stephen Stephen. I remember listening to interviews from Stephen in 2021 on various different YouTube channels, explaining how great Voyager is, how sensible they are, how great a business it is and, of course he has to do that its his job but Im shocked and, to be frank, appalled to See the lack of risk management carried out by him and his team, I mean this is sheer negligence, well, probably listed company to be struggling to be to be putting such shoddy lack of risk management in place. Now lets take a look at the thread voyages I mean he starts off with voyages right, no ones with you right now, nobodys on a voyage with you. They want their money back, so they can leave nobodys with you right now. Voyagers today we began a voluntary Financial restructuring process to protect assets on the platform maximize value for stakeholders, especially customers and emerge. As a stronger company, Voyager will continue operating throughout now remember with chapter 11, you can continue to operate at least they can keep trying to bring Revenue in.

Even though we know their Equity price is just going to the toilet. As we speak, we strongly believe in the future of the industry, but the prolonged volatility in the crypto markets and the default of three hours Capital require us to take this decisive action. Oh my God, this is just insane so put this into perspective. So imagine this hes just come out and hes blamed straight in the second part of his tweet. He said this is due to the prolonged volatility in the crypto Market. What do you want to about? The the volatility weve had is less than the volatility in previous bull markets. Ive been speaking about that when we look at the Unchained metrics were in a healthier State, now percentage by percentage, weve not had the same fall down, weve had from automizers. We had in previous markets, so what are you talking about? What did you even stress test? Your company? Do you want? Did you even test it against the same percentages seen in a previous bull market hi? This is gross negligence, its ridiculous right and then to blame. Freeras capital, I mean: how are you blaming three arrows Capital lets get on to this? I have I have this here somewhere for you guys here. How will you blame me three hours Capital look at this guys so of all the liabilities they had the counterparties. Six. Six here, six billion um yeah sixty percent of the entire amount; okay, so this is in thousands, 650 million of 1.

1 billion in total loan obligations was given to three hours Capital. Another 30 odd percent was given to Alameda. You add those two guys up guys. Most of them are ridiculous. Ninety percent of their exposure was to two counterparties and Alameda. I understand well its, not okay, but I understand it because FTX gave him 200 million dollars of cash. They also gave him a revolving credit facility right and theyve got equity in the company as well. So somebody knows what hes doing hes, not gon na be risking his money without making sure hes got his tentacles everywhere in these companies, but three hour capital. I mean this is this is insane right. This is insane uh lack of risk management and, if you as an individual investor, took your earnings and you had a portfolio allocation like this, I would say youre a fool right, but this is a company. This is a public listed company. This is a company with a hundred thousand users plus using their platform. Loaning them money insane insane, and this is all publicly available information which you guys could have found right lets. Also talk about FDIC Im going to come on to what this means for uh Voyager holders and how much of your money you can expect to get back now. Lets look at this now. Fdi insurance is in this. We have a similar thing here in the UK, but in the states its to protect your money right in the event of a bank collapsing.

Now what youll notice is. This is very, very important, your in the marketing materials – you will see it says here through our strategic relationship 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 your company or our banking Partners failure you are guaranteed a full reimbursement up to 250k. This is not completely true. Okay, now lets understand what is FDIC Insurance FDI insurance. First of all only works for fiat currency right. It only works for your USD. So if youre in stable coin, it doesnt work for you, they didnt make this clear for people. They should make this extremely clear not for stable coins. Obviously they dont, because you wont sign up to the platform right. Obviously they wont now also very very important. Theyve said there in the failure, if your funds are compromised due to the company or our banking Partners failure. This is not true so that banking is conducted by Metropolitan Bank theyre, the bank for Voyager. Now, if Metropolitan Bank fails and you hold USD youre fun to reimbursed, if you hold any other token right or crypto and Voyager fails, you do not get reimbursed. If you hold USD and Voyager fails, you also do not get FDIC insured, but theyre claiming you are here. So definitely something else to pick up here. Uh from that Voyager perspective, not going to go into all of this, you guys could read the full statement uh that they released, but what I do want to spend some time looking at.

Is this so its really important to notice that uh? What is a good outcome right? What can we expect to see in terms of money being paid out? So lets take a look. So if this is a really good Twitter thread by the way by Ox hands, go check this out a few things. Reading the one for 141 page Voyager digital bankruptcy filing glad he read it or I read part of it and got really really bored so started. Searching through the key bits I wanted to find Voyager is not in freeform. It has a plan on file to exit bankruptcy, which is a good outcome. Yes, we spoke about that, assuming no free, AC recovery and no vgix token value. So remember what theyre saying here just to break this down. Very simply what Stephen the CEO is saying is theyre going to restructure and theyre going to try to give people their cash back the money they had back as much as they can and then theyre going to give them some whatever they can recover from three hours. Capital no guaranteed behind what will be recovered, but assuming they can get some of that recovered and theyre going to give some vgx tokens, but remember vgx tokens are in the bin right now, theres, no value in that. So what happens is saying is assuming nothing is recovered from free, AC and no vgx tokens. He assumes you can get up to 80 recovery between the available cash and crypto Assets.

Now, if we take a look at the breakdown, you can see. Theyve got a bunch of crypto assets here, theyve loaned out this much and therefore you can take a look to see what is their net cash and therefore, what does that mean in terms of recovery hes getting this to about 79, which could give you the excitement That youll end up with 80, but I dont want to give you that excitement just yet guys, because we dont know until we know we dont know whos going to get their cash first and in what order. But if done responsibly, it looks like there are funds there. You should be expecting something back right. Like a 20 haircut now remember the 500 million June 2022 animated rescue loan, only 75 million was drawn, expect animated to take a 20 haircut on that, given its paripasu with customer deposits. In addition, Alameda owned 9.5 of common Equity, but obviously thats going to zero, because the equity is worthless at the moment. Its important to remember that, okay, so now, what does this mean? What should we learn from this whole kind of saga, which has happened? The first thing I want to say is: I dont think this is the last weve said it before and weve say it again. This will probably not be the last one. I mean lets put this into perspective. Weve got sambangman freed whos out there doing shopping right. Weve got crypto exchange.

Ftx is a few billion to support the industry hes sitting there with his couple of billion spare loving this because he knew it was going to happen. This is the cycle. Weve learned nothing from traditional finance and the one thing I want to mention to you guys whether its Celsius, whether its Voyager, whether its Babel or anybody else, whos making these shoddy practices free arrows Capital. These are not crypto people in their heart. They are not crypto people. These are traditional Finance people with traditional Finance mindsets who came into our industry of crypto and bought their malpractices with them, theyre no different. They just saw a quick buck with a lack of Regulation where they could take the shoddy practice which worked in traditional Finance many decades ago, which they were too late for and theyre applying it here in crypto. So we should not tolerate it. We should not be putting our funds with these companies. We should not be accepting these Mavericks as the leaders of the companies that represent crypto. It is not the way forward, and so we really need to educate ourselves to make that movement happen, and it all starts from doing your research, not putting your money in places which have poor poor risk management. Who are really you know putting your money into D5 in DJ, plays which you wouldnt even do, but you think youve got your usdc stuck in a safe place and theyre going and making speculative speculative crazy bets on.

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