: ‘I just wake up and cry’: Voyager and Celsius bankruptcies have destroyed some crypto investors’ confidence in centralized platforms

by | Jul 14, 2022 | Stock Market

Yotsy Ruiz recently bought his first ever crypto hardware wallet — a Nano X from Ledger. He is transferring all his crypto holdings that he can still move to the small physical device which looks like a USB flash drive, and away from large centralized exchanges such as Binance and Coinbase.  The 40-year old resident of Frederick, Md, who owns a home remodeling business, hastily made the move after crypto broker Voyager Digital, which he trusted with some of his savings, froze all user withdrawals at the start of July and filed for bankruptcy protection.

In November, Ruiz invested about $33,000 in crypto on the Voyager platform. His holdings, including more than 11,110 Cardano
ADAUSD,
+0.35%
and 360,000 Terra Luna Classic
LUNAUSD,
-0.98
among others, are now worth about $5,000 as crypto prices have plunged. Now, it’s unclear if Ruiz will ever even get his coins back.   “Sometimes you want to buy coins like Shiba Inu
SHIBUSD,
0.68,
you want to buy Dogecoin
DOGEUSD,
0.08,
people tell you, ‘no, no, don’t buy that, those are bad products and you can lose the money.’ But then you trusted these exchanges. You lost not only one coin, but all the money there,” Ruiz said in an interview with MarketWatch. Voyager said it had signed up more than 3.5 million users as of March 31, by offering high interest rates that reached up to 12% on their crypto deposits and connecting customers to crypto exchanges and market makers for trading. It also partnered with Mastercard on a debit c …

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