2 years ago
Crypto lender Voyager Digital has filed for Chapter 11 bankruptcy. The institution explained that the “prolonged volatility and contagion successful the crypto markets” and the default of crypto hedge money Three Arrows Capital (3AC) connected a indebtedness necessitate it “to instrumentality deliberate and decisive enactment now.”
Voyager’s Bankruptcy Filing
Voyager Digital Ltd. (TSE: VOYG) announced Wednesday that it has filed for Chapter 11 bankruptcy. The announcement details:
The institution and its main operating subsidiaries filed voluntary petitions for reorganization nether Chapter 11 successful the U.S. Bankruptcy Court of the Southern District of New York.
In addition, the institution said it “intends to question designation of the Chapter 11 lawsuit of Voyager successful the Ontario Superior Court of Justice,” the announcement adds.
A lawsuit filed nether Chapter 11 of the United States Bankruptcy Code is often referred to arsenic a “reorganization” bankruptcy. This benignant of bankruptcy puts a clasp connected each civilian litigation matters and allows companies to hole restructuring plans portion remaining operational.
In its filing, New Jersey-based Voyager estimated that it has much than 100,000 creditors. Alameda Research was the crypto lender’s largest azygous creditor, with unsecured loans of $75 million. In addition, Voyager said it has betwixt $1 cardinal and $10 cardinal successful assets, and liabilities worthy the aforesaid value.
Stephen Ehrlich, CEO of Voyager, explained:
The prolonged volatility and contagion successful the crypto markets implicit the past fewer months, and the default of Three Arrows Capital (‘3AC’) connected a indebtedness from the company’s subsidiary, Voyager Digital, LLC, necessitate america to instrumentality deliberate and decisive enactment now.
Voyager suffered immense losses from its vulnerability to Singapore-based crypto hedge money Three Arrows Capital. Last week, the crypto lender said it had issued a announcement of default to 3AC for failing to marque required payments connected a indebtedness of 15,250 bitcoin (approximately $307 cardinal based connected the terms of BTC astatine the clip of writing) and $350 cardinal worthy of stablecoin USDC. However, connected July 1, 3AC filed for section 15 bankruptcy, which allows overseas debtors to shield U.S. assets.
Last week, Voyager suspended each trading, deposits, and withdrawals connected its platform, citing “current marketplace conditions.” Several different crypto firms person likewise halted withdrawals, including Celsius Network, Babel Finance, and Vauld. The second received a takeover bid from rival steadfast Nexo connected Tuesday.
At the clip of writing, Voyager’s banal is down 97.8% year-to-date.
What bash you deliberation astir Voyager filing for Chapter 11 bankruptcy? Let america cognize successful the comments conception below.
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