Days After Suspending Transactions, Voyager Files For Bankruptcy

July 6, 2022

MCP News Free

Days After Suspending Transactions, Voyager Files For Bankruptcy

As the crypto market continues to plunge, crypto firms, especially lending firms, have been facing insolvency issues, and now, Voyager has become the latest firm to file for bankruptcy.

The Toronto-based crypto lending firm, Voyager, filed for Chapter 11 bankruptcy protection on Tuesday, for more time to explore strategic alternatives, almost a week after freezing trading, withdrawals, and deposits on its platform.

In a statement by Voyager Chief Executive Officer Stephen Ehrlich. “The prolonged volatility and contagion in the crypto markets over the past few months, and the default of Three Arrows Capital on a loan from the company’s subsidiary, Voyager Digital, LLC, require us to take deliberate and decisive action now.”

“The chapter 11 process provides an efficient and equitable mechanism to maximize recovery,” he added.

In the Voyager Digital Chapter 11 bankruptcy filing on Tuesday, the firm estimated that it had over 100,000 creditors and somewhere between $1 billion and $10 billion in crypto assets. The company also recorded the same range for its liabilities.

The Chapter 11 bankruptcy protection procedures allow firms to put a hold on any legal action by the creditors pending the time the firm will explore strategic alternatives to sort out its bankruptcy issues while still operating.

In a tweet by Ehrlich, customers with crypto in their account will receive a mix of their cryptoassets, proceeds from the 3AC recovery, common shares in the newly-reorganized firm, and Voyager tokens.

As part of this process, the proposed Plan of Reorganization would resume account access and return value to customers. Under this Plan, which is subject to change given ongoing discussions with other parties, and requires Court approval:
— Stephen Ehrlich (@Ehrls15) July 6, 2022

Join the early adopter now to be miles ahead of the early/late majority by honing your trading skills with our ParadiseFamilyVIP, our Paradise Team will assist you to grow your portfolio in Binance (Spot and Futures), Kucoin, and Bybit cryptocurrency exchanges with little or no effort required from you, MyCryptoParadise makes daily analysis of BTC, ETH, and other trending altcoins.

Use PRO20% for your special 20% discount, a trial will get you convinced. Please be aware that this promo expires soon. Click here to see reviews from our clients.

Voyager Creditors

In the filing, Voyager Digital equity holders comprise two companies associated with FTX’s Sam Bankman-Fried, Alameda Research Ventures LLC and Alameda Ventures Ltd.

According to the filing, the crypto lending firm also owes Google about $1 million. Meanwhile, Voyager’s stock had already been battered by the incessant crypto market sell-off and was trading at 27 cents on Tuesday, when the market closed. Giving the company a market cap of $65 million Canadian dollars (around 50 million US dollars), smaller than $75 million unsecured loan issues by Alameda Research, according to the bankruptcy filings.

In a blog post by Voyager, the firm stated that it had $110 million in cash, $1.3 billion in cryptocurrency, and $350 million in cash at metropolitan, with 3AC owing Voyager $650 million.

Join our telegram channels where we share our FREE updates and analysis on coins like BTC, ETH, and other trending altcoins. We also share our FREE secret insights. And also FREE market updates.