Bankrupt crypto lender Voyager saw its VGX token surge almost 18% on Friday after about a third of the supply was burned.
Roughly 83 million tokens were sent to burn addresses across two transactions. The price surged from around $0.12 to as high as $0.14, according to The Block's Price Page. It's now back just over $0.13.
Changes to Voyager multisig ownership can enable new VGX token minting, The Block Research confirmed.
The move appears to be intentional, says Miguel Morel, CEO of the crypto data tracking platform Arkham Intelligence.
"They sent the test transaction to the dead address first," Morel told The Block. "Then two minutes after it confirmed sent the rest. For the other address they sent themselves ETH for gas first and then sent to the dead address 8 minutes after. So it appears purposeful. It’s currently unclear what the motivation would be."
Voyager filed for Chapter 11 bankruptcy protection on July 6, 2022, The Block previously reported.
Lawyers involved in Voyager's bankruptcy did not respond to a request for comment from The Block.
(Updates in third paragraph with details on multisig ownership.)
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