Crypto exchange Gemini has thrown a lifeline to the customers of the bankrupt crypto lender, Voyager Digital. In an announcement made on June 25, Gemini noted that it would offer support for cryptocurrency withdrawals to Voyager’s clients through July 2023.
According to the blog post, affected customers of the Voyager bankruptcy can create a Gemini account to withdraw their cryptocurrency in-kind as part of the claims of the distribution process. The move is set to assist numerous customers who have been stranded since Voyager Digital filed for bankruptcy protection in July 2022.
The bankruptcy filing of Voyager Digital came in the wake of a crypto contagion spurred by the collapse of Terra Luna and Three Arrows Capital (3AC). In response to the escalating sell-off pressure in the market, Voyager Digital was forced to halt transactions, leaving its customers in limbo.
Relief came in May of this year when Voyager announced that its clients would soon be able to recover their assets in-kind. Projections at the time suggested that customers might retrieve up to 35% of their cryptocurrency deposits.
With this arrangement, customers will receive refunds in the form of the same digital assets they held before Voyager paused withdrawals and subsequently filed for bankruptcy. However, accounts with unsupported assets and those holding the native Voyager Token, VGX, will be refunded through the USDC stablecoin.
Gemini has, however, highlighted some restrictions on these transactions. The exchange will not support withdrawals related to unsupported tokens and has warned customers to ensure they transfer supported tokens only.
In the announcement, Gemini cautioned customers: “Any unsupported tokens sent to your Gemini account may be lost and completely unrecoverable. Likewise, sending tokens to Gemini over an unsupported network will result in a complete loss of funds.”
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If customers do not withdraw their tokens by the end of the specified period, Voyager will liquidate these assets, and the cash proceeds will be distributed to the respective customers.
