Voyager Digital files for bankruptcy late Tuesday in the Southern District of New York. In what has been a turbulent turn of the year for many cryptocurrency projects, most of them have had to bite the dust. Voyager Digital seems to be the latest to be going down with recent reports of bankruptcy.
This Brief Story
Voyager is yet another Crypto Brokerage platform, yeah. They do those hold your crypto for you and lend them out to borrowers who pay a premium from which they settle you with some very sizeable interest in return. Exactly, there are a whole lot of them out there. The likes of BlockFi, Nexo, Celsius and Babel to mention but a few. Of course we have posts on some of them, do look them up.
Voyager Digital files for Bankruptcy
The company actually started the proceedings for filling Chapter 11 Bankruptcy Protection late hours of Tuesday, July 5th 2022 in the Southern District of New York. Stating that it has assets to the tune of $1 to $10 Billion and also liabilities in like sum.
It is gathered that some hedge funds like Three Arrows Capital or 3AC that defaulted to the sum of $650million contributed to the current predicament that Voyager so finds itself in. Last week, Voyager suspended withdrawals, deposits and trading on its platform is a bid to get a grasp of what was going on with the company as the entire crypto market continued to be hammered down.
“We strongly believe in the future of the industry but the prolonged volatility in the crypto markets, and the default of Three Arrows Capital, require us to take this decisive action,”
this the CEO of the company, Stephen Ehrlich said early Wednesday morning in a tweet.
There is a plan…
The company said it took the measure to file for Bankruptcy in a bid to help the company recover as soon as possible and that there is some restructuring that is taking place already so as to allow it reimburse customers and investors. It further said that customers who made deposits in US dollars will have access to their funds once the necessary account and books verifications with the authorities are concluded.
BlockFi another crypto broker who had some challenges got bailed out by Sam Bankman-Fried, it remains to be seen if the owner of FTX one of the biggest crypto exchanges will not acquire BlockFi.