BREAKING: Voyager Files For Bankruptcy

July 6, 2022 6:35 am Comments

Another one bites the dust…

Voyager Digital, a prominent cryptocurrency broker, has reportedly filed for bankruptcy due to market volatility and the unexpected collapse of Three Arrows Capital as reasons.

This comes just a few weeks after Voyager Digital temporarily halted trading, withdrawals, and deposits on its platform.

The company filed Chapter 11 bankruptcy  in the Southern District of New York and stated it had between one billion and ten billion dollars in assets and over one hundred thousand creditors.

In a press release CEO of Voyager Stephen Ehrlich was quoted saying : “Voyager’s platform was built to empower investors by providing access to crypto asset trading with simplicity, speed, liquidity, and transparency. While I strongly believe in this future, the prolonged volatility and contagion in the crypto markets over the past few months, and the default of Three Arrows Capital on a loan from the company’s subsidiary, Voyager Digital, LLC, require us to take deliberate and decisive action now”.

CNBC Shared these details:

Beleaguered crypto brokerage Voyager Digital has filed for Chapter 11 bankruptcy protection, becoming the latest casualty of chaos in digital asset markets.

Voyager commenced bankruptcy proceedings in the U.S. Bankruptcy Court of the Southern District of New York on Tuesday, according to a filing from the company. The filing lists assets of between $1 billion and $10 billion, and liabilities in the same range.

In a statement, the company said it has roughly $1.3 billion of crypto on its platform and holds over $350 million in cash on behalf of customers at New York’s Metropolitan Commercial Bank.

Voyager suffered huge losses from its exposure to crypto hedge fund Three Arrows Capital, which went bust last week after defaulting on loans from a number of firms in the industry — including $650 million from Voyager.

“We strongly believe in the future of the industry but the prolonged volatility in the crypto markets, and the default of Three Arrows Capital, require us to take this decisive action,” Voyager CEO Stephen Ehrlich said in a tweet early Wednesday.

The Toronto-listed firm’s shares have lost nearly 98% of their value since the start of 2022.

Market Watch got the scoop too:

Cryptocurrency broker Voyager Digital Ltd. said Wednesday that it has filed for bankruptcy, days after it suspended withdrawals and trading on its platform amid growing turmoil in digital-currency markets.

The company said in a statement that it has initiated Chapter 11 restructuring in New York, where it is based, and will seek recognition of the case in Canada, where it is listed.

The bankruptcy filing comes after Voyager was caught up in the problems of one of its investors, Three Arrows Capital Ltd., a hedge fund that was ordered to liquidate after cryptocurrencies it was heavily invested in crashed.

Voyager said that it is “actively pursuing all available remedies for recovery” from Three Arrows, including through court-supervised processes in the British Virgin Islands and New York.

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