Major cryptocurrency broker Voyager Digital Ltd. has filed for bankruptcy protection, becoming the second major company to file during the recent volatility in the crypto market after the collapse of Three Arrows Capital. The company filed for Chapter 11 bankruptcy late Tuesday, a mere week after it suspended withdrawals, deposits and trading on its platform. At the same time, the company issued a notice that the hedge fund Three Arrows Capital had defaulted on a $650 million loan. According to the filing, the company could be facing anywhere between $1 billion and $10 billion in asset liabilities to more than 100,000 creditors. “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,” Stephen Ehrlich, chief executive of Voyager Digital, said on Twitter. The Chapter 11 filing will allow the company to implement a proposed plan to restructure its accounts without liquidating assets while management remains in control. Ehrlich went on to explain that the proposed “Plan of Reorganization” would open up account access for users.
Full story : Cryptocurrency broker Voyager Digital files for bankruptcy.
