Gemini, a cryptocurrency exchange, has stepped in to assist customers of the bankrupt cryptocurrency lender, Voyager Digital. In an announcement on June 25, Gemini revealed that it would facilitate cryptocurrency withdrawals for Voyager clients until July 2023.
According to Gemini’s blog post, affected Voyager customers can create a Gemini account to withdraw their cryptocurrency as part of the distribution process for the bankruptcy claims. This move aims to aid the numerous stranded customers since Voyager Digital filed for bankruptcy protection in July 2022.
Voyager Digital’s bankruptcy filing occurred amid a crypto downturn triggered by the collapse of Terra Luna and Three Arrows Capital (3AC). In response to the market sell-off pressure, Voyager Digital was forced to suspend transactions, leaving its customers in a difficult situation.
In May of this year, Voyager announced that clients would soon be able to recover their assets in the same form as they held them before the withdrawal suspension. It was estimated that customers might retrieve up to 35% of their cryptocurrency deposits.
Under this arrangement, customers will receive refunds in the form of the same digital assets they held before Voyager halted withdrawals and filed for bankruptcy. Unsupported assets and accounts holding Voyager Token (VGX) will be refunded in the USDC stablecoin.
Gemini has specified certain limitations on these transactions. The exchange will not support withdrawals related to unsupported tokens and has cautioned customers to transfer only supported tokens.
Gemini warned customers in the announcement, stating, “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.”
If customers do not withdraw their tokens within the specified period, Gemini will liquidate these assets, and the resulting cash proceeds will be distributed to the respective customers.
Compiled by Coinbold
