Voyager’s Crypto Liquidation Spree: Millions in Shiba Inu and Ethereum Dumped Amidst Binance.US Deal Uncertainty

In the ever-turbulent world of cryptocurrency, even in times of market recovery, some chapters are still closing. Remember Voyager Digital, the crypto lender that faced headwinds and ultimately declared bankruptcy? Well, they’re still making headlines as they continue to liquidate their substantial cryptocurrency holdings. Let’s dive into the latest blockchain data to see what’s happening with their Shiba Inu (SHIB) and Ethereum (ETH) stashes.

Voyager’s Crypto Wallet: A Shrinking Treasure Chest?

Recent on-chain analysis from Lookonchain reveals that Voyager isn’t done selling off its crypto assets, particularly its significant holdings in Shiba Inu. Just how much SHIB are we talking about? Brace yourselves – as of the latest report, Voyager still controls a staggering 5,170,000,000,000 SHIB. That’s right, over 5 trillion Shiba Inu tokens! At current prices, this colossal amount translates to roughly $57,283,600.

Now, if you’re thinking, “Wow, that’s a lot!” you’re absolutely right. But here’s the interesting part: this is actually a decrease from just a week prior. Imagine this: Voyager’s SHIB wallet used to hold a whopping 6,500,000,000,000 Shiba Inu, valued at around $81 million. That’s a considerable chunk of SHIB that’s been moved – presumably sold – in a single week.

But Shiba Inu isn’t the only cryptocurrency Voyager is offloading. Ethereum, the second-largest cryptocurrency by market cap, is also on the liquidation list. Let’s take a look at the ETH numbers:

As you can see, the numbers are significant. Voyager has substantially reduced both its ETH and SHIB holdings in a short period. This ongoing liquidation reflects the company’s bankruptcy proceedings and efforts to repay creditors.

Why the Fire Sale? Unpacking Voyager’s Liquidation

So, why is Voyager selling off these massive amounts of crypto? The simple answer is bankruptcy. After the crypto market downturn in 2022, Voyager, like several other crypto firms, faced severe liquidity issues. This led to the company filing for Chapter 11 bankruptcy protection.

As part of the bankruptcy process, Voyager is obligated to liquidate assets to repay its creditors. Cryptocurrencies like SHIB and ETH, being among their most liquid holdings, are prime candidates for these sales. The process is aimed at converting these digital assets into cash that can be distributed to those who are owed money by Voyager.

Adding another layer to this story is the attempted acquisition of Voyager’s assets. Initially, FTX, another now-bankrupt crypto exchange, had plans to acquire Voyager. However, with FTX’s own dramatic collapse, that deal obviously fell apart.

Enter Binance.US. In December, Binance.US, the US arm of the global crypto exchange giant Binance, stepped in with a bid to acquire Voyager’s assets for over a billion dollars. This offered a glimmer of hope for Voyager’s creditors and customers.

The SEC Steps In: A Regulatory Roadblock?

However, the path to acquisition hasn’t been smooth. The United States Securities and Exchange Commission (SEC) has raised objections to the proposed Binance.US deal. The exact nature of the SEC’s concerns isn’t fully transparent yet, but it’s significant enough to potentially derail the acquisition.

Judge Michael Wiles, overseeing Voyager’s bankruptcy case, has voiced his frustration with the SEC’s intervention. He’s essentially asking the SEC to clarify their objections and explain why they are potentially halting the Binance.US deal with limited explanation. This situation introduces uncertainty into the future of Voyager’s asset distribution and the timeline for creditors to potentially recover funds.

Voyager’s Ongoing Sales: By the Numbers

Let’s get back to the recent crypto movements. Lookonchain’s report highlights a specific transaction:

“Voyager just got $2.25 million USDC after selling 1,449 ETH through Wintermute two hours ago; the selling price was $1,553 per ETH.”

This single transaction demonstrates the scale of Voyager’s ongoing asset sales. Selling 1,449 ETH in one go is a substantial move, and it’s just a snapshot of the larger liquidation process.

Here’s a broader picture of Voyager’s remaining crypto holdings as of the latest update:

• Ethereum (ETH): 148,774 ETH (approximately $233 million)
• Shiba Inu (SHIB): 5.17 trillion SHIB (approximately $57 million)
• Chainlink (LINK): 1.44 million LINK (approximately $10 million)
• StormX (STMX): 1.17 billion STMX (approximately $7 million)
• Avalanche (AVAX): 411,052 AVAX (approximately $6 million)

While ETH and SHIB are the largest portions, Voyager still holds significant amounts of other cryptocurrencies like LINK, STMX, and AVAX. The liquidation process is likely to continue impacting these assets as well.

What Does This Mean for the Crypto Market, Especially SHIB and ETH?

The continuous selling pressure from Voyager’s liquidation could have implications for the prices of the cryptocurrencies involved, particularly Shiba Inu and Ethereum. When a large entity like Voyager sells off substantial amounts of an asset, it can temporarily increase supply in the market, potentially leading to downward price pressure.

However, the crypto market is complex and influenced by many factors. While Voyager’s sales might exert some selling pressure, the overall market sentiment, broader economic conditions, and other demand factors also play crucial roles in price movements. It’s difficult to isolate the exact impact of Voyager’s liquidation alone.

For Shiba Inu, a cryptocurrency known for its volatile price action and strong community, the Voyager liquidation adds another element to consider. Large sell-offs can sometimes trigger volatility, but the SHIB community is known for its resilience and ability to rally support.

Ethereum, being a more established and widely held cryptocurrency, might be less susceptible to price swings solely due to Voyager’s sales. However, consistent selling pressure over time could still have some impact.

Looking Ahead: Uncertainty and Resolution

The Voyager saga is far from over. The ongoing liquidation of crypto assets, coupled with the uncertainty surrounding the Binance.US acquisition due to SEC objections, creates a complex situation. Creditors and customers of Voyager are watching closely, hoping for a resolution that maximizes their potential recoveries.

The judge’s demand for clarity from the SEC suggests that the legal process is actively seeking to address the regulatory hurdles. The coming weeks and months will be crucial in determining the fate of the Binance.US deal and the ultimate distribution of Voyager’s remaining assets.

For crypto market participants, monitoring Voyager’s wallet movements and any further updates on the Binance.US acquisition and SEC stance will be important. This situation serves as a reminder of the risks associated with centralized crypto platforms and the complexities of bankruptcy proceedings in the digital asset space. Stay tuned for further developments in this unfolding story.