Bankrupt Crypto Lender Moves 270 Billion SHIB To Coinbase

Bankrupt crypto lender Voyager Digital moved 270 billion Shiba Inu tokens to U.S.-based crypto exchange giant Coinbase in just a 12-hour period along with other tokens, including Ethereum’s Ether.

Blockchain security company Peckshield, which spotted on-chain data detailing the transactions, revealed on Twitter that Voyager-linked addresses moved approximately $27.7 million worth of cryptocurrency assets to Coinbase.

The now-bankrupt crypto lender moved approximately $3 million worth of Shiba Inu tokens, $19 million worth of ETH (17,000) and approximately $4 million worth of Voyager tokens (12 million VGX) this week.

Voyager Digital’s recent move is normal since investors typically move their crypto assets to centralized crypto exchange platforms when they are planning to sell them. This has been the case with the bankrupt crypto lender, which has been selling its assets since last month.

The company moved 300 billion SHIB worth around $3.4 million to Coinbase and shifted $25.3 million or around 15,000 ETH to both Coinbase and Binance in recent weeks.

Twitter handle @lookonchain, which looks into smart money on-chain, shared in February a series of transactions made by Voyager Digital, indicating it was selling assets through Coinbase. The transactions, which started on Feb.14, revealed that the bankrupt crypto lender was sending crypto assets to Coinbase almost on a daily basis.

Voyager Digital has since moved millions of dollars worth of tokens, including Ethereum, Shiba Inu and Chainlink, and has received approximately $100 million in USDC from Coinbase.

According to @lookonchain, Voyager Digital held around $531 million worth of crypto assets as of late February, which included approximately $81 million worth of Shiba Inu tokens.

These asets included 172,223 $ETH($276M), 186M $USDC, 2.14M $LINK($15.8M), 581,052 $AVAX($10.5M), 1.17B $STMX($8.3M), 11.9M $MANA($7.88M), 12M $FTM($5.6M) and 1M $APE($5.1M).

Voyager Digital filed for Chapter 11 bankruptcy protection in July 2022 with the majority of its customers now favoring a restructuring plan that will see Binance US acquire some of the crypto lender’s assets.

The firm has already secured court approval to sell its assets to Binance US, which, over the past weeks, has been objected to by financial regulators like the U.S. Securities and Exchange Commission (SEC) and the Federal Trade Commission (FTC).

New York Judge Michael Wiles, who handles the bankruptcy proceedings of Voyager Digital, sided with the crypto lender and approved the proposed restructuring deal, which saw Binance US agreeing to pay $20 million in cash to Voyager Digital.

The deal with Binance US is worth $1.3 billion and while it has already been approved by the court, Voyager Digital has yet to clear some hurdles before the deal finally pushes through and gets finalized.