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Crypto Lender Voyager Digital Files For Bankruptcy, Latest To Join Firms Hit By Crash

Crypto Lender Voyager Digital File, the latest to join the firm to go bankrupt

Crypto lender Voyager digital file for bankruptcy

Voyager Digital has filed for bankruptcy, the crypto lender said in a statement on Wednesday, after a week of suspending withdrawals, trading and deposits on its platform because it wanted extra time to explore strategic options.

In its Chapter 11 bankruptcy filing on Tuesday, Toronto-listed Voyager estimates it has more than 100,000 lenders and somewhere between $ 1 billion and $ 10 billion in crypto assets. The company has recorded the same range for its liability.

Chapter 11 bankruptcy procedures cover all civil litigation issues and allow companies to prepare turnaround plans while they are in operation.

“We now have to take deliberate and decisive action to address the long-standing instability and contagion in the crypto market over the past few months and the default of Three Arrows Capital on loan from the company’s affiliate Voyager Digital, LLC,” said Dr. Stephen Erlich, Voyager’s CEO.

Many of the recent problems in the crypto industry can be traced back to the spectacular fall of the so-called stablecoin TerraUSD in May, which saw stablecoin lose almost all value, including its pair of tokens.

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