"Feels Like I Was Robbed": Voyager Bankruptcy Spooks Crypto Believers

ndtv.com:

Voyager Digital's collapse is rattling the crypto industry.

Crypto investors are known for their devotion, but their confidence is cracking as the latest company collapse rattles the industry.

News that customers of bankrupt broker Voyager Digital Ltd. likely won't get all their money back has struck a new kind of fear into those already whipsawed by the sector's swift declines.

Crypto traders often shrug off steep losses, arguing they're holding for the long term and expect prices to rebound. Yet for investors who trusted Voyager with their retirement savings, down payments and emergency cash, the prospect that their investments might be gone forever is a wakeup call for those who believed large trading platforms offered a form of security.

Aaron Selenica, 21, says he “fell into the crypto craze” last fall after hearing about Bitcoin from his friends and joining the University of Connecticut's crypto club. He saw ads for Voyager at the school's basketball games and eventually invested about $15,000 in Bitcoin on the platform. 

Now, his holdings are worth about $6,900 and he doubts he'll even be able to get that back. He knew investing in crypto came with risks, but he never expected the platform to collapse.

“It feels like I was robbed,” he said. “I just don't understand how this could be legal. I'm not going to invest on another platform. I'm done with crypto.”

The recent crypto plunge, with Bitcoin down about 70% from its peak, is fueling widespread financial troubles for companies involved in the space. Lenders like Celsius Network, Babel Finance and Vauld have suspended withdrawals, while firms such as Coinbase Global Inc. are cutting jobs. The Voyager implosion is the latest debacle is what is now being called a crypto