Voyager and Celsius are forging ahead with their bankruptcy plans but only Voyager seems to be making any crypto transfers.
Crypto lending firms Voyager Digital and Celsius Network have both received approvals to begin moving their crypto portfolios around. Both bankrupt lenders are still trying to resolve their bankruptcies in court and have been involved in court action since filing for bankruptcy last year. However, activity on the Celsius front has been stagnant, while Voyager is active.
According to a filing on June 30, the Bankruptcy Court in the Southern District of New York authorized Celsius to exchange its remaining crypto for Bitcoin (BTC) or Ether (ETH). The firm had admitted to meeting with the United States Securities and Exchange Commission (SEC) over its recent decision to classify some cryptocurrencies as securities. According to the Commission, MATIC, BNB, ADA, ALGO, and SOL, among others, are securities.
Following these talks, the court allowed Celsius to “maximize the value of [its] Altcoins” and sell them for ETH or BTC. Data from crypto intelligence platform Arkham Intelligence stated that Celsius held nearly $600 million at the time, including $187.04 million in altcoins.
Despite the approval, Celsius has yet to make any moves as of Tuesday. The lender’s last activity was moving $11.3 million worth of MATIC (17.3 million tokens) to a Polygon staking contract for rewards. Before then, Celsius had sent $7.1 million USDC to FalconX.
Celsius filed a bankruptcy exit plan following an agreement with crypto consortium Fahrenheit. After launching an auction last October and receiving multiple bids, Fahrenheit beat NovaWulf Digital Management to emerge the winner. The offer includes a $300 million cash payment and $700 million worth of Fahrenheit tokens. However, Celsius later filed an update that limits user recovery and is now getting heavy pushback from customers.
Voyager Moves Crypto Around as Celsius Holds Off
While the Celsius Network seems to be delaying any sales or transfer transactions, Voyager has recorded heavy activity. Nearly one year after suspending all operations, Voyager authorized user withdrawals from June 23. According to Arkham Intelligence, Voyager held nearly $413 million in multiple assets the day before withdrawals officially began. Withdrawals will only be possible for 30 days.
Last week, crypto exchange and custodian Gemini announced support for users looking to withdraw funds from its platform. Customers can only transfer assets supported by Gemini as attempts to do otherwise or transfer supported assets on unsupported networks, may result in loss.
Since officially starting withdrawals, Voyager has recorded consistent outflows, reducing its $413 million by 25% to $307.5 million. Calculated at current market prices, the total value of all crypto withdrawn is $134 million. The top three outflows are BTC, USDC, and ETH, respectively.
Last week, Voyager received a $1.1 million bill from its legal advisor, Kirkland & Ellis, for April. The company charged Voyager for work done, at a blended hourly rate of $1,313.18. On the other hand, Voyager Creditors got a $5.1 million bill for services rendered from March to May. Law firm McDermott Will & Emery has now billed the group of creditors more than $16 million.