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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 suspending withdrawals, trading and deposits on its platform as it sought additional time to explore strategic alternatives.
In its Chapter 11 bankruptcy filing on Tuesday, Toronto-listed Voyager estimated that 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 suspend all civil litigation matters and allow businesses to prepare restructuring plans while remaining in business.
“The prolonged volatility and contagion in the crypto markets in recent 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 the CEO of Voyager. Officer Stephen Ehrlich said.
Many of the recent woes in the cryptocurrency industry can be traced back to the spectacular collapse of the so-called TerraUSD stablecoin in May, in which the stablecoin lost almost all of its value, along with its paired token. read more
Reporting from Shivam Patel in Bangalore; Additional reporting by Ann Maria Shibu; Edited by Sherry Jacob-Phillips
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