Bankrupt Crypto Firm Voyager Hit By Hackers Amid Liquidation Process: Here's What You Need to Know

Bankrupt crypto firm Voyager Digital Holdings Inc. has reportedly been targeted by hackers during its reopening phase.

The platform was reopened for a 30-day period to allow customers to withdraw their remaining assets as part of a court-supervised liquidation process.

During this period, customers managed to withdraw nearly 80% of the available assets, amounting to about $490 million, according to Darren Azman, the company's attorney.

The potential security breach has been reported to law enforcement and is currently under investigation by bankruptcy officials managing the company's dissolution, Bloomberg reported.

Azman revealed this information during a brief court hearing.

He also highlighted that customers have been targeted by various scams aimed at gaining access to their digital wallets.

Typically, these scams involve the creation of a fake website that promises Voyager customers an increased payout if they link their non-Voyager crypto wallets to a new account.

Once the new account is created, the non-Voyager wallets are drained.

Also Read: Ukraine Central Bank Demands Financial Data From Kuna, CoinPay, GEO Pay And Qmall

While only a small number of customers have fallen victim to these scams, there have been some casualties.

"It's disgraceful," commented US Bankruptcy Judge Michael Wiles during the court hearing. "I don't know what to say. After everything these folks have been through."

Voyager is the first in a series of bankrupt crypto firms to start returning money to creditors and customers.

Earlier in April, Binance.US terminated a deal to purchase the crypto platform, which reduced the potential recovery for customers.

At that time, Voyager officials estimated that customers could recover about 36% of what they were owed, or more than 60% if the company won a legal battle with another bankrupt crypto firm, FTX Trading.

According to court documents, Voyager had about $630 million to satisfy $1.8 billion in account claims.

Disclosure: Benzinga CEO Jason Raznick is a member of the unsecured creditor committee in the Voyager Digital bankruptcy case.

Read Next: FTX Preps Comeback Plan To Resolve 'Exceptionally Large, Complicated Collection Of Claims'Join Benzinga's Future of Crypto in NYC on Nov. 14, 2023 to stay updated on trends like AI, regulations, SEC actions & institutional adoption in the crypto space. Secure early bird discounted tickets now! 

Photo: Shutterstock