Scammers Target Voyager Customers During Withdrawal Process: Report2. August 2023
• Scammers targeted Voyager Digital customers during the 30-day window when they were able to withdraw funds from the bankrupt crypto brokerage
• The scammers used fake websites offering customers a premium for claiming through them, but they actually drained customers’ wallets
• Law enforcement has been notified of the situation and the California Department of Financial Protection and Innovation issued a warning about it
Voyager Customers Targeted by Scammers During Withdrawal Period
Voyager Digital, a crypto brokerage that filed for bankruptcy in July 2022, opened up a month-long window from June 23 to July 22 for customers to withdraw some portion of their funds. During this time, scammers set their sights on unsuspecting Voyager customers.
How Were Customers Targeted?
The typical method used by scammers was to offer Voyager customers higher returns through fake websites that drained customer’s wallets after being linked to them. The California Department of Financial Protection and Innovation (DFPI) issued a warning that Voyager customers were receiving letters, calls and emails using Voyager CEO Stephen Ehrlich’s name and falsely offering higher returns for users of these sham websites.
Amount Withdrawn By Customers?
Customers were able to withdraw $490 million between June 23 and July 22. This sum was almost 80% of the amount available according to Darren Azman, a lawyer for the firm. Very few customers were fooled by the scams however, as per Azman’s statement at a hearing of Southern District of New York Bankruptcy Court held over telephone.
What Happened To Voyager Digital After?
FTX US had planned on buying Voyager’s assets in September but this did not go through due to FTX collapse. Binance.US also backed out at the last minute while planning on buying $1 billion of Voyager assets in April. Eventually Judge Michael Wiles approved a bankruptcy plan in May which provided customers with about 36 cents for every dollar claimed as their losses.
It is unfortunate that so many people fell victim to scam artists during such an uncertain time as this one is with regards to cryptocurrency investments and trading platforms like Voyage Digital going bankrupt one after another due to mismanagement or other factors beyond their control . It is important for investors in these platforms to be wary and take extra precautionary measures before investing any money into them so as not fall prey to unscrupulous individuals looking exploit vulnerable people who are desperate for quick profits off cryptocurrencies without properly understanding how they really work or function within markets worldwide