US-Based Crypto Firm Voyager Digital Files For Bankruptcy

New York [US]: In another major setback to the crypto industry, the US-based crypto broker and lender Voyager Digital on Tuesday filed for the bankruptcy process.

0
213
Representations of cryptocurrency Bitcoin plunge into water in this illustration taken, May 23, 2022. REUTERS/Dado Ruvic/Illustration - RC20DU9JZZLV

New York [US]: In another major setback to the crypto industry, the US-based crypto broker and lender Voyager Digital on Tuesday filed for the bankruptcy process.


The firm, through the bankruptcy procedure, intends to maximise value for all its stakeholders, it said in a statement. 

It aims to pay its employees in the usual manner and continue their primary benefits and certain customer programs without disruption. 

Trading, deposits, withdrawals and loyalty rewards on the Voyager platform remain temporarily suspended. 

Founded in 2018, it has approximately $1.3 billion of crypto assets on its platform, plus claims against Singapore-based Three Arrows Capital (“3AC”) of more than $650 million.


The Three Arrows Capital has defaulted on various loans and is in deep trouble.


“This comprehensive reorganisation is the best way to protect assets on the platform and maximise value for all stakeholders, including customers,” said Stephen Ehrlich, Chief Executive Officer of Voyager in the statement.


“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…,” Ehrlich said.


The default of Three Arrows Capital (“3AC”) on a loan from the Company’s subsidiary, Voyager Digital requires it to take “deliberate and decisive action now”, Ehrlich further said, adding that the bankruptcy process provides an efficient and equitable mechanism to maximise recovery.


The Company continues to evaluate all strategic alternatives to maximise value for stakeholders, Voyager said.

To put things into context about the recent slump in crypto trade, the value of Bitcoin as a crypto asset has tumbled 55 per cent so far in 2022. The crypto market, at large, has fallen by about a third since it hit its peak sometime in November last year and left many investors poorer. 

LEAVE A REPLY

Please enter your comment!
Please enter your name here