Trusted

Voyager Digital Customer Data Reportedly Hacked During Bankruptcy Proceedings

2 mins
Updated by Josh Adams
Join our Trading Community on Telegram

In Brief

  • Former customers of bankrupt crypto lender Voyager Digital may have had their personal data compromised.
  • The company faced troubles starting in June 2022 when Three Arrows Capital failed to repay $666 million in loans.
  • A former customer reported receiving a phishing letter with detailed information about the individual's Voyager account, adding credibility to the hacking claims.
  • promo

Former customers of Voyager Digital, the bankrupt crypto lender that went bust in 2022, may have had their personal data compromised.

According to a post by Tree News, customer details have leaked during the company’s protracted bankruptcy proceedings. Voyager was one of the high-profile victims of the terraUSD (UST) crash—the first big domino to fall during crypto’s nightmare year. Its worries began in June 2022, when it announced Three Arrows Capital (3AC) had failed to repay $666 million in loans. 

Voyager Filed for Bankruptcy in July 2022

Before its own collapse, 3AC managed roughly $10 billion in assets. 3AC’s business strategy included borrowing funds from the industry and using them to invest in various crypto projects. However, its plans failed spectacularly when terraUSD went under.

Following 3AC’s failure to repay the loans, on July 1, Voyager suspended “trading, deposits, withdrawals, and loyalty rewards.” Only four days later, the company filed for Chapter 11 bankruptcy protection. 

At its peak, Voyager Digital had 3.5 million users and $5.9 billion in assets. Virtually all its users were retail investors with less than $10,000 USD on the platform.

Learn to keep your digital assets safe with this helpful guide: 9 Crypto Wallet Security Tips To Safeguard Your Assets

One former customer added credence to the hacking claims after sharing a story of receiving a phishing letter in the mail that included “basically all the information Voyager had of mine.”

“Even the (nearly) exact amount I had in voyager at the time of the bankruptcy and the claim amount. Don’t know how a phisher would have that info without a hack,” the source said on X.

On February 28, Voyager announced that its customers had approved the crypto lender’s Chapter 11 bankruptcy plan. “97% of customers representing 98% of the total claims, voted in favor,” the company said.

Voyager Digital is due to return 35% of customers’ cryptocurrency deposits after a failed buyout attempt by Binance.US. FTX had also attempted to buy the crypto lender, but itself collapsed in November 2022.

This is a developing story.

Top crypto projects in the US | October 2024
Coinbase Coinbase Explore
Coinrule Coinrule Explore
3Commas 3Commas Explore
Uphold Uphold Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | October 2024
Coinbase Coinbase Explore
Coinrule Coinrule Explore
3Commas 3Commas Explore
Uphold Uphold Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | October 2024

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Frame-2298.png
Josh Adams
Josh is a reporter at BeInCrypto. He first worked as a journalist over a decade ago, initially covering music before moving into politics and current affairs. Josh first owned Bitcoin in 2014 and has followed the space ever since. He is particularly interested in Web3 adoption, policy and regulation, CBDCs, privacy, and the future of the metaverse.
READ FULL BIO
Sponsored
Sponsored