Voyager said it has roughly $1.3 billion of crypto on its platform and holds over $350 million in cash on behalf of customers at New York’s Metropolitan Commercial Bank.
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During a five-hour Chapter 11 bankruptcy hearing earlier this month for crypto firm Voyager Digital, a customer named Magnolia was the first user to step forward and speak about her experience.
Magnolia, who only disclosed her first name, said she had over $1 million trapped on the platform, including $350,000 that was earmarked to pay for college for her children. She said it had taken her 24 years to save, and she had sacrificed spending time with her kids in order to build that nest egg.
“I do feel like we’re paying the ultimate price for them being fiscally irresponsible,” Magnolia said. “They had our trust, they had our money, and they did not run this company properly.”
Magnolia wanted to know why Voyager borrowed money instead of cutting costs when it knew things were going south. She also asked whether CEO Stephen Ehrlich was still getting paid and receiving a bonus.
Magnolia is one of Voyager’s 3.5 million customers, a group that’s desperate for answers more than a month after the company suspended all trading and, soon after, filed for Chapter 11 bankruptcy. Voyager, once a popular lending platform, drew in retail investors by offering them up to double-digit annual returns in exchange for parking their tokens with Voyager.
As the crypto market boomed last year, Voyager
