- Blockchain platform Ethos has launched a recovery token program for users affected by the crypto broker Voyager’s bankruptcy.
Recovery Token Program
The Ethos team will extend a recovery token program to those affected by Voyager’s bankruptcy. According to the Ethos website, both VGX holders and creditors will be eligible to claim ETHOS tokens with proof of valid claim. The Ethos self-custody platform uses ETHOS tokens as a utility asset.
Based on a future blockchain snapshot, VGX holders will get 10% of the ETHOS token supply. A comparable sum will be divided among Voyager’s creditors.
VGX holders will get 10% of the ETHOS token supply based on a future blockchain snapshot. If Voyager creditors demonstrate proof of claim, a similar sum will be allocated pro-rata among them.
Creditors can use the Ethos platform to lodge their claims. A snapshot will be taken for VGX holders, and tokens will be issued via the Ethos app. That approach will provide relief to the VGX community, which has been left aside by the bankruptcy process of Voyager.
The Dreadful Collapse of Voyager
Voyager Digital filed for bankruptcy in July 2022 after stating that it would cease all activities, including deposits, withdrawals, and client awards. The cryptocurrency broker became another victim of the crypto winter caused by the collapses of many significant players in the crypto industry.
Voyager Digital’s bankruptcy followed the bankruptcy of Singapore-based cryptocurrency hedge fund Three Arrows Capital (3AC). 3AC failed to repay a debt of $15,250 bitcoins and $350 million USDC to Voyager Digital, totaling more than $650 million.
In September, cryptocurrency exchange FTX led by Sam Bankman-Fried won the bid to acquire the assets of the bankrupt Voyager Digital, with a bid valued at approximately $1.42 billion.
On the Flipside
- Ethos and Voyager have previously collaborated. Voyager Digital acquired crypto wallet startup Ethos in 2019. The acquisition was built on a strategic partnership between the two companies.
- Voyager used Ethos’ technology to onboard new customers and manage their crypto assets, processing over $5 billion using Ethos crypto rails. However, the founding Ethos team quit the board in 2021, and Voyager eventually declared bankruptcy 18 months later.
- A team of eight former Ethos team members started Ethos 2.0. It will work as a decentralized and self-custody alternative to trading systems with comparable capabilities, such as Voyager.
Why You Should Care
Voyager Digital was a mega cryptocurrency fund that managed assets worth up to $10 billion. With over 3.5 million customers, the bankruptcy shattered many investors’ savings and portfolios. With losses reaching $600 million, the collapse of the Voyager platform has caused significant turbulence in the crypto industry.
Read more about FTX winning the Voyager digital asset auction:
FTX Wins Voyager Digital Asset Auction to Buy the Crypto Lender for $1.4 Billion
Read more about Voyager’s bankruptcy:
Crypto Lender Voyager Digital Files for Bankruptcy