Cryptocurrency lender Voyager Digital filed for bankruptcy on July 5, 2022, becoming the second company after 3AC to declare bankruptcy in recent times.
Toronto (Canada)-based Voyager Digital filed for Chapter 11 bankruptcy protection in the United States District Court for the Southern District of New York on the evening of July 5, 2022 (US Eastern Time).
Voyager is estimated to have more than 100,000 users and manages assets between $1 and $10 billion. Meanwhile, the company’s debt is also in the range of less than $10 billion.
Voyager Digital CEO Stephen Ehrlich in a statement issued late Tuesday:
“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 require us to take deliberate and decisive action now. The chapter 11 process provides an efficient and equitable mechanism to maximize recovery.”
Ehrlich later confirmed the news as well, declaring the company’s debt restructuring action “voluntary” to “protect the assets on the platform, the interests of shareholders and especially users,” and at the same time confirmed will continue to operate.
According to the debt restructuring plan announced by Voyager, customers holding crypto assets in corporate accounts will receive part of the remaining crypto assets, debt recoverable from 3AC, and shares in the new Voyager company after having restructured Voyager’s debt and tokens.
Voyager Digital previously said that Three Arrows Capital owes itself more than $662 million in cryptocurrency. The company suspended trading, deposit, and withdrawal from July 2 and finally filed for bankruptcy on July 5.
The company’s current assets are $110 million in cash, $350 million in bank accounts, and $1.3 billion in user crypto assets. The company also announced that it will take legal action to collect the debt from Three Arrows Capital.
In its bankruptcy filing, Voyager said it owed Alameda $75 million, although at the end of June the company said it had borrowed $200 million in cash/USDC, 15,000 Bitcoin (BTC), with a total value of about $485 million at the time of borrowing.
It’s worth noting that Voyager’s share price has fallen by nearly 90% in the past month.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Voyager Digital Files For Bankruptcy
Cryptocurrency lender Voyager Digital filed for bankruptcy on July 5, 2022, becoming the second company after 3AC to declare bankruptcy in recent times.
Toronto (Canada)-based Voyager Digital filed for Chapter 11 bankruptcy protection in the United States District Court for the Southern District of New York on the evening of July 5, 2022 (US Eastern Time).
Voyager is estimated to have more than 100,000 users and manages assets between $1 and $10 billion. Meanwhile, the company’s debt is also in the range of less than $10 billion.
Voyager Digital CEO Stephen Ehrlich in a statement issued late Tuesday:
“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 require us to take deliberate and decisive action now. The chapter 11 process provides an efficient and equitable mechanism to maximize recovery.”
Ehrlich later confirmed the news as well, declaring the company’s debt restructuring action “voluntary” to “protect the assets on the platform, the interests of shareholders and especially users,” and at the same time confirmed will continue to operate.
According to the debt restructuring plan announced by Voyager, customers holding crypto assets in corporate accounts will receive part of the remaining crypto assets, debt recoverable from 3AC, and shares in the new Voyager company after having restructured Voyager’s debt and tokens.
Voyager Digital previously said that Three Arrows Capital owes itself more than $662 million in cryptocurrency. The company suspended trading, deposit, and withdrawal from July 2 and finally filed for bankruptcy on July 5.
The company’s current assets are $110 million in cash, $350 million in bank accounts, and $1.3 billion in user crypto assets. The company also announced that it will take legal action to collect the debt from Three Arrows Capital.
In its bankruptcy filing, Voyager said it owed Alameda $75 million, although at the end of June the company said it had borrowed $200 million in cash/USDC, 15,000 Bitcoin (BTC), with a total value of about $485 million at the time of borrowing.
It’s worth noting that Voyager’s share price has fallen by nearly 90% in the past month.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Harold
CoinCu News
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