Crypto dealer Voyager Digital recordsdata for chapter – Thealike

Voyager Digital, a high-profile crypto dealer, has filed for chapter, citing market volatility and the stunning collapse of Three Arrows Capital, simply weeks after it suspended withdrawals, buying and selling and deposits on its platform.

The U.S.-headquartered agency — and its two associates — mentioned in a Chapter 11 chapter submitting within the Southern District of New York that it had between $1 billion and $10 billion in belongings and over 100,000 collectors.

Voyager Digital owed $75 million to Sam Bankman-Fried’s Alameda Research, which lately threw the dealer a lifeline of $485 million, and about $960,000 to Google, it disclosed in the filing (PDF). Voyager didn’t identify different corporations to whom it owes cash.

“Voyager’s platform was built to empower investors by providing access to crypto asset trading with simplicity, speed, liquidity, and transparency. While I strongly believe in this future, 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,” wrote Stephen Ehrlich (pictured above), chief govt of Voyager, in a press launch.

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

The worth of Voyager token over the previous one 12 months. (Data and picture: CoinMarketCap)

Voyager mentioned Three Arrows Capital, a high-profile crypto hedge fund that filed for chapter final week, owed it greater than $650 million. Three Arrows Capital, based by Credit Suisse merchants Zhu Su and Kyle Davies, managed an estimated $10 billion in belongings.

Three Arrows Capital owed various corporations massive sums of cash. Crypto lender BlockFi, which had an publicity to 3AC, too, scrambled to stay solvent after the collapse of the hedge fund and agreed to be acquired by FTX’s U.S. arm for as much as $240 million final week.

“Voyager is actively pursuing all available remedies for recovery from 3AC, including through the court-supervised processes in the British Virgin Islands and New York,” Voyager mentioned within the press launch.

The shares and token worth of Voyager plummeted on the news to new lows.

“During the reorganization, we’ll maintain operations. We intend to certain customer programs without disruption. Trading, deposits, withdrawals and loyalty rewards on the Voyager platform remain temporarily suspended,” Ehrlich mentioned in a tweet.

Source link

Comments are closed.