Crypto lender Voyager files for bankruptcy

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Stephen Ehrlich, CEO and co-founder of Voyager Digital Ltd., speaks during the Piper Sandler Global Exchange and FinTech conference in New York, U.S., June 8, 2022. REUTERS/Brendan McDermid

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July 6 (Reuters) – Voyager Digital (VOYG.TO) has filed for bankruptcy, the crypto lender said in a statement on Wednesday, a week after it suspended withdrawals, trades and deposits on its platform as it sought more time to explore strategic alternatives.

In its Chapter 11 bankruptcy filing on Tuesday, Toronto-listed Voyager estimated it had more than 100,000 creditors and between $1 billion and $10 billion in crypto assets. The company also recorded the same range for its liabilities.

Chapter 11 bankruptcy proceedings put a stop to all civil cases and allow companies to prepare reorganization plans while remaining operational.

“Prolonged volatility and contagion in the crypto markets over the past few months, and Three Arrows Capital’s default on a loan from the company’s subsidiary, Voyager Digital, LLC, compels us to take deliberate and decisive action. now,” said Voyager’s chief executive. said Officer Stephen Ehrlich.

Many recent problems in the crypto industry can be attributed to the dramatic collapse of the so-called stablecoin TerraUSD in May, which saw the stablecoin lose almost all of its value, along with its paired token. Read more

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Reporting by Shivam Patel in Bangalore; Additional reporting by Ann Maria Shibu; Editing by Sherry Jacob-Phillips

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