The Voyager Token (VGX-USD) is soaring 420% in morning trading even though its founder, Voyager Digital, has filed for bankruptcy protection. VGX crypto is now changing hands for around 80 cents per token.

Voyager Digital disclosed on July 6 that it had filed for bankruptcy on the previous day. In its filing, the company disclosed it had approximately $1.3 billion in crypto assets and more than $350 million in cash, which was held in a For Benefit of Customers (FBO) account.

The company stated the Voyager Digital bankruptcy was caused by the collapse of Three Arrows Capital (3AC), a hedge fund that had invested heavily in cryptos. Voyager reported it had provided 3AC with a loan of $650 million. On July 1, Voyager paused all withdrawals, deposits and rewards from its accounts.

Reassuring News on the Voyager Digital Bankruptcy

On July 11, InvestorPlace writer Eddie Pan reported Voyager customers should soon be able to retrieve any cash they had on the platform. He quoted Voyager as saying its customers’ cash is FDIC-insured and will be available “after a reconciliation and fraud prevention process.”

Also on July 11, Voyager reported that it is seeking to allow its customers to regain access to their accounts. The company stated its customers would be refunded, but added they may get their cash back through multiple payments and in a different form than when they had deposited it.

Price Predictions for VGX Crypto

Gov Capital has a one-year price target of $4.90 on the token, while WalletInvestor weighed in with a 12-month prediction of just 2.36 cents for VGX crypto. DigitalCoinPrice expects the token to have an average price of $1.13 next year.

On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.