Trading on Voyager Digital Stock Resumes on OTC Pink Sheets
- Voyager digital made a chapter 11 bankruptcy filing at the South District of New York court on July 6, 2022.
Voyager Digital has announced a resumption of trading on its common shares (VOYG). However, the announcement clarifies that trading on VOYG is only available on OTC pink sheets and would trade under a new ticker symbol (VYGVQ).
The official statement further explained that its shares no longer qualify to be listed on the OTCQX international following its bankruptcy filing on July 5, 2022. OTC initially paused trading on the VOYG following a notice from Voyager to the Toronto Stock Exchange (TSX) to remove VOYG from the TSX.
Voyager on a Recovery Plan
Voyager chose a voluntary delisting of its VOYG on the TSX following a notice from the TSX. The TSX wrote to Voyager that it would need to review the eligibility of the VOYG before it can keep the ordinary shares listed on the TSX.
The TSX noted that the review had become necessary after Voyager and its principal subsidiaries filed for bankruptcy. You’d recall that Voyager digital made a chapter 11 bankruptcy filing at the South District of New York court on July 6, 2022.
However, the company’s business operations haven’t felt the effect of the resumption of trading of VOYG on the OTC pink sheets. Likewise, the voluntary removal of the VOYG from TSX hasn’t made any impact. A quick peek at the OTCMarkets platform shows that VYGVQ is down 25.4 percent and trades at $0.13.
Meanwhile, Voyager has made a court filing to grant withdrawal requests worth $350 million to its customers. Voyager explained that the said amount is currently held at a custodian bank. The crypto lender added that if it fails to honor these withdrawals, most of its customers will lose even more trust in the company, especially in light of recent events.
In a previous statement, Voyager disclosed that it owns a “for the benefit of customers (FBO) account at the metropolitan commercial bank, and the account has $350 million in deposits.” Once customers can access their funds, it would give them proof that Voyager truly has a $350 million FBO account.
Voyager also seeks approval to continue some of its business operations. It expressed this intention in another section of this court filing. Such functions include liquidating digital assets from users with negative balances, continuing crypto staking, and reconciling some user accounts. It also seeks to liquidate ‘sweep cash’ available on third-party exchanges.
The crypto lender also claims it still has $1.3 billion in crypto available on the platform. Voyager digital and Celsius network are the two notable crypto lenders that have filed for bankruptcy following the liquidation of the popular crypto hedge fund, three arrows capital (3AC).
3AC also cited the collapse of the Terra network, especially the TerraUSD stablecoin, as the leading cause of its liquidity issues and failure. The crash of these notable crypto firms further fuels global regulators’ talk about the lack of investor protection in the crypto industry.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
