Yesterday, crypto lending platform Voyager Digital (TSE:VOYG) filed for bankruptcy.

The news came shortly after hedge fund Three Arrows Capital (3AC) — which owes nearly $650M to Voyager — filed for bankruptcy last week.

What’s the big deal? There was a lot of shady sh*t going on behind the scenes of Voyager, which came to light in recent weeks. Well-known banking commentator Frances Coppola shared her thoughts in a post, stating:

• Voyager essentially took its customers’ deposits and made high-risk bets by lending the money out.
• $1.1B in loans was heavily concentrated among seven borrowers. 40% were lent to 3AC, which filed for bankruptcy.

In Coppola’s view, Voyager played the role of a high-risk hedge fund using customer deposits. Voyager was also losing money hand over fist with excessive marketing spending and customer rewards.

What this means for customers: Voyager is restructuring the company to pay back lenders and customers, and most will lose money. Voyager owes between $1B and $10B to more than 100,000 creditors.

• One Twitter user popular in the crypto community, @0xHamZ, expects customers to receive 80 cents on the dollar.
• Customers will receive a mix of crypto, cash, Voyager’s tokenVGX
  and Voyager shares in the restructured company.

Voyager said customers with USD deposits will be able to access funds after a “reconciliation and fraud prevention process is completed with Metropolitan Commercial Bank.”

The crypto contagion is still unraveling, with many firms still stuck in limbo. Celsius Network, Babel Finance and Vauld have suspended withdrawals, and it’s uncertain how many more will follow suit.