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How do I report my Voyager Bankruptcy losses on my taxes?
How do I report my Voyager Bankruptcy losses on my taxes?

Learn how Voyager's bankruptcy will affect your taxes and how CoinLedger can help

Benjamin Yoder avatar
Written by Benjamin Yoder
Updated over a week ago

On July 5th, 2022, Voyager filed voluntary Chapter 11 Bankruptcy. As a result, customers lost access to the coins they held in their Voyager accounts. CoinLedger partnered with Voyager so that creditors can opt into importing bankruptcy recovery transactions into the CoinLedger platform to view, download, and report these transactions on your tax return.

In this article we’ll outline Voyager’s bankruptcy and instruct you on how you can import these transactions into the CoinLedger app.

All instructions, guidance, and information contained herein related to use of the CoinLedger app, exporting data, tax advice, or otherwise is being offered solely by CoinLedger. Such instructions, guidance, and information is not being provided by Voyager or any successors thereto. Voyager encourages all creditors to consult with their personal tax professionals regarding any questions or concerns.

Jump Ahead:

How can I import my bankruptcy transactions from Voyager?

Step 1

Sign-in to your CoinLedger account or create a new CoinLedger account if you don’t have one. Please use the same email address that you use for your Voyager account.

Step 2

Ensure your Voyager Partnership Sync is up-to-date. If you haven’t imported from Voyager recently, or if this is your first time, click the ellipses next to the account name and select Re-Sync.

Tip: if you don’t remember the date of your last import, click the clock icon shown below for a look at your Import History!

Step 3

Review your imports on the Transactions page to see the data imported from Voyager during your sync. Transactions labeled Bankruptcy Liquidation and Bankruptcy Recovery (shown below) represent the cryptocurrency that was liquidated for fiat currency (U.S. dollars).

Step 4

After completing and verifying the import of your Voyager bankruptcy recovery transactions, the corresponding transaction types will automatically populate your tax forms. Please navigate to the Tax Reports page to download your Form 8949 (used to represent your gains and losses), and use this form to self-file your taxes or forward it to your accountant.

Overview & Timeline

  • July 5, 2022: Voyager filed for bankruptcy and halts all transactions on its platform.

  • June 2023: Voyager initiates initial in-kind distribution (bankruptcy recovery) process for creditors.

  • September 2023: Voyager liquidates substantially all of the remaining crypto assets within customer accounts and mails U.S. dollar-denominated checks to users (i.e. record holders of general unsecured claims at the address identified in the official claims register).

In June 2023, Voyager began an in-kind distribution process (bankruptcy recovery), permitting customers to transfer approximately 35.72% of their outstanding claim amounts to external wallets. The assets that were made available for distribution were either ~35.72% of the same token that was originally deposited into the customers’ accounts or the equivalent amount of those tokens in USDC.

As a creditor, whether you received 35.72% of your original asset back or 35.72% of USDC-worth of your asset back depends on whether the asset was classified as supported or unsupported.

Note: A supported asset refers to an asset that had the ability to be directly transferred off of the Voyager platform without converting to a different cryptocurrency.

After this occurred, creditors were given a 30-day window to withdraw these assets from their Voyager accounts. All crypto that was not withdrawn during the 30-day window was thereafter liquidated to U.S. dollars. Checks for the USD liquidation value were sent to creditors beginning in September 2023.

What does this look like in CoinLedger?

As noted earlier, CoinLedger is built to handle each of these bankruptcy events. Here is an example of what they look like in CoinLedger once imported!

If the assets were Supported assets, you will see the following imported to CoinLedger:

  • “Bankruptcy Recovery” — A Bankruptcy Recovery transaction reflects the original amount of an asset withdrawn from your account followed by 35.72% of the same asset deposited back into your account.

    • Taxability: This is treated as a non-taxable swap by CoinLedger, meaning it does not trigger a taxable disposal event. Your cost basis in the original amount of the asset will carry forward to the new amount of asset held.

  • “Bankruptcy Liquidation” — A Bankruptcy Liquidation transaction reflects the amount of a recovered asset being traded into the equivalent amount of U.S. dollar. This is reflected only if you did not withdraw your assets within the 30-day window. U.S. dollar recoveries were mailed out to record holders of claims via check beginning in September.

    • Taxability: This is treated as a taxable disposal by CoinLedger. You will incur gain or loss depending on how your cost basis in the original amount of the asset differs from the liquidated value of the U.S. dollar you received.

If the assets were Non-Supported assets, you will see the following imported to CoinLedger:

  • “Bankruptcy Recovery” — Reflects the original amount of an asset withdrawn from your account followed by 35.72% of the same asset deposited back into your account.

    • Taxability: This is treated as a non-taxable swap by CoinLedger, meaning it does not trigger a taxable disposal event. Your cost basis in the original amount of an asset will carry forward to the new amount of asset held.

  • “Bankruptcy Liquidation” — Reflects the amount of the recovered asset being traded into the equivalent amount of USDC. Because these assets were non-transferable, this transaction happened immediately after the recovery in June 2023.

    • Taxability: This is treated as a taxable disposal by CoinLedger. You will incur gain or loss depending on how your cost basis in the original amount of an asset differs from the liquidated value of USDC you received.

If you did not withdraw your USDC in the 30-day withdrawal period, you will see an additional Bankruptcy Liquidation Transaction in August 2023 exchanging USDC to U.S. dollars.

IMPORTANT NOTE: If you held VGX in your Voyager account, bankruptcy transactions will be handled slightly differently. You will see the following transactions imported:

  • “Bankruptcy Liquidation” — Reflects the amount of VGX being traded for 35.72% of the equivalent amount of USDC. This transaction occurred in June 2023.

    • Taxability: This is treated as a taxable disposal by CoinLedger. You will incur gain or loss depending on how your cost basis in VGX differs from the liquidated value of USDC you received.

If you did not withdraw your USDC in the withdrawal period, you will see another Bankruptcy Liquidation Transaction in August and September 2023 exchanging USDC to U.S. dollars.

Which assets were treated as supported (transferable) by Voyager?

The following were treated as Supported transactions by Voyager, meaning they could be directly transferred off of the platform without converting to a different currency:

ASSET

AAVE

ADA

ALICE

AMP

ANKR

APE

AUDIO

AXS

BAND

BAT

BCH

BICO

BNT

BTC

CHZ

COMP

CRV

DAI

DASH

DOGE

DYDX

ENJ

ENS

ETC

ETH

FARM

FET

FTM

GALA

GLM

GRT

JASMY

KEEP

KNC

LINK

LPT

LRC

LTC

MANA

MATIC

MKR

OCEAN

OMG

OXT

PERP

POLY

QNT

REN

SAND

SHIB

SKL

SPELL

SRM

STMX

SUSHI

TRAC

TUSD

UMA

UNI

USDC

USDT

WBTC

XRP

YFI

YFII

YGG

ZRX

How can I export my Voyager data?

You can export your Voyager transaction history by first importing into CoinLedger for free (navigate to your account settings). Select Data Tools > Export Transactions History. This will generate a CSV containing all of your imported transactions. If you import transaction history from more than one platform to CoinLedger, you can further sort the exported CSV file by platform to filter your Voyager transactions.

Your CSV transaction history file is not a filing document and can’t be used to file your tax return. We suggest purchasing and downloading the Form 8949 as detailed above in order to ensure that your bankruptcy transactions are properly accounted for.

Learn more about all the file exports available from CoinLedger here.

Have any other questions? Reach out to our Support Team anytime for assistance!!

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