Bankrupt Crypto Firm Voyager Faces Security Breach During Liquidation

Bankrupt crypto firm Voyager Digital Holdings Inc. has fallen victim to hackers while in the midst of its reopening.

The company had recently allowed customers to withdraw their remaining assets within a 30-day window as part of a court-supervised liquidation process.

As the platform reopened, customers wasted no time in withdrawing nearly 80% of the available assets, totaling around $490 million, according to statements from Darren Azman, the company's attorney.

However, this period of activity also brought to light a potential security breach that has now caught the attention of law enforcement and bankruptcy officials overseeing the company's dissolution.

During a brief court hearing, Azman disclosed the concerning development of the security breach.

U.S. Bankruptcy Judge Michael Wiles had this to say regarding the issue:

"It's disgraceful. I don't know what to say. After everything these folks have been through.”

Furthermore, he pointed out that customers were not only grappling with the company's financial situation but were also being targeted by various scams designed to gain access to their digital wallets.

These scams operate by creating counterfeit websites that lure Voyager customers with promises of heightened payouts if they link their non-Voyager crypto wallets to new accounts.

Regrettably, once these accounts are established, the non-Voyager wallets are promptly drained, leaving customers at a loss.