Voyager Digital Files Chapter 11 Bankruptcy in New York
Aaron Limbu Jul 06, 2022 09:35
Cryptocurrency broker Voyager Digital Ltd. said that it has filed for Chapter 11 bankruptcy in New York.
Cryptocurrency broker Voyager Digital Ltd. said that it has filed for Chapter 11 bankruptcy in New York.
The bankruptcy was filed days after the company suspended withdrawals and trading on its platform. The company has said that it will seek recognition of the case in its home country Canada, where it is listed.
According to The Block, per the petition for Voyager Digital Holdings, estimated assets are between $1 billion and $10 billion, with between $1 billion and $10 billion in estimated liabilities. The estimated number of creditors exceeds 100,000.
Currently, three business entities - Voyager Digital Holdings, Voyager Digital LLC and Voyager Digital, Ltd. - are seeking protection.
The three largely identical petitions were submitted via the Southern District of New York bankruptcy court.
Last week, Voyager halted users' access to withdrawals, deposits and trading, citing the present market conditions. "This was a tremendously difficult decision, but we believe it is the right one given current market conditions," CEO Stephen Ehrlich said at the time.
Prior to the suspension of withdrawals, Voyager had issued a notice of default to hedge fund Three Arrows Capital Ltd. over failed repayment of a $650 million loan. The hedge fund was also ordered to liquidate after the crash of cryptocurrencies it had heavily invested in.
Three Arrows itself also filed for Chapter 15 bankruptcy last week.
Voyager stated that it is "actively pursuing all available remedies for recovery" from Three Arrows, including through court-supervised processes in the British Virgin Islands and New York.
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