The first time Robert came across the company was in March 2020.

He gave the broker a try. The platform was simple to use. He could get an up to 9% annual percentage yield, much higher than a traditional savings account. It claimed to be insured by the FDIC. He wondered how bad the company would be if it were a publicly traded company.

Robert, who asked to be identified by only his first name for privacy reasons, told Fortune that he invested six figures on Voyager. A user who asked to remain anonymous invested about $38,000 on the platform.

The company suspended trading on July 1 and filed for Chapter 11 protection on Tuesday.

In the rare event yourUSD funds are compromised due to the company or our banking partner's failure, you are guaranteed a full reimbursement up to $250,000. The Metropolitan Commercial Bank is insured by the Federal Deposit Insurance Corporation.

The user said that learning this was like a kick in the stomach.

Robert says that he cries on a daily basis. I don't know what to say to her. She trusted me more than anyone else to make the right decision when we decided to invest.

The investors are learning how their money was invested in a hedge fund that engaged in extremely risky behavior.

‘It’s heartbreaking’

3AC has not repaid a $650 million loan according to Voyager.

The Terra ecosystem collapse took a toll on 3AC. It was rumored that Celsius Network was going to be bankrupt by June. Their failures set off a domino effect throughout the industry, and last week, 3AC creditor sought to liquidate the company in the British Virgin Islands.

According to its court filing, the company hopes to return at least a percentage of its customers' investments. In court documents, the company said that it may offer shares to customers after it emerges from Chapter 11. Its customers can't withdraw their savings because of the delay. Some people have shared their thoughts of suicide and depression on the internet.

Robert said it was heartbreaking. I felt terrible because I was not prepared.

Most of its users treated it as a bank. The broker started to offer high yield for their deposits. The funds were lent to other people for higher yields.

The company continued to tell customers that it was doing well even after it filed for protection.

Stephen Ehrlich stated that the assets of customers were safe. All products and services are operational and unaffected by current market conditions. Securing customer assets is our top priority.

The company did not engage in Defi lending activities.

Once the market took a turn for the worse, the overexposure to 3AC became obvious. After securing a $500 million line of credit from a quant trading shop, the company wanted to shore up its finances. Even though it was still worried about a "run on the bank" due to users attempting to withdraw their funds, the company decided to file Chapter 11.

The user of six years said that he had no idea that Voyager would be lending customersUSDC. I would have kept it in cash in my safe if I'd known it was possible to lend it out.

Robert said that he did every single thing a reasonable person would do. He thought that the company was not targeted by regulators. I should have been aware. It's a different thing when you look in hindsight.

Scott Melker, a well-known investor and podcaster with over 851,000 followers, told Fortune that he has been using the platform for several years.

It hurts to not be able to access an account he used for savings, but he hedged his portfolio and understands that he took a big risk. Melker feels bad about friends, family and his viewers, mostly.

If I hadn't broughtVoyager to their attention, they wouldn't have considered it. Losing my own money is worse than that.

What’s ahead

It is not clear how long the bankruptcy process will take, according to two lawyers. They said that the hope is that retail investors will get their money back if the restructuring is successful.

After it reorganizes, the company wants to give its users some of their funds. It is not certain if users can be made whole due to the variety of assets they have purchased on the platform.

Melker told Fortune that he is one of the top 50 asset holders on the platform and that the top 10 or 20 holders might have a say in what happens in the bankruptcy procedure.

According to the company, it has over $110 million of cash and assets on hand, which will be used to support operations during the Chapter 11 process. $350 million of customers money is in an account at Metropolitan Commercial Bank.

Some people have vowed to never invest in cryptocurrencies again because of this experience. Others are not bearish.

Melker has nothing against the company or its creators. His history with the company goes back to when he first started his show. He wants to see his assets again.

He says he's out a lot of money. It's embarrassment. I'm a person who talks about risk management and protecting assets, but I was over exposed, but it was what I was comfortable with.

They hope that they will soon have access to their savings.

Robert says that hope is not a plan but there is nothing he can do about it. I need to get my assets back. I don't need the rewards. I just need the money.

Fortune did not get a response from the company.