After Suspending Withdrawals, Voyager Digital Files for Chapter 11 Bankruptcy
The cryptocurrency brokerage firm – Voyager Digital Ltd. – and its two subsidiaries (Voyager Digital LLC and Voyager Digital Holdings) filed for Chapter 11 Bankruptcy with the Southern District of New York. The step comes a few days after the company halted trading, deposits, and withdrawals on its platform.
- Voyager Digital becomes the latest crypto lender to file for bankruptcy. According to a petition, the firm seeks to create a financial plan that could solve its problems with debt and creditors and enable it to restructure its operations.
- Stephen Ehrlich – the CEO of Voyager Digital – argued that the Chapter 11 Bankruptcy aims to grant users additional protection and secure their assets.
Voyagers, today we began a voluntary financial restructuring process to protect assets on the platform, maximize value for all stakeholders, especially customers, and emerge as a stronger company. Voyager will continue operating throughout.https://t.co/TxlO4eua8E
— Stephen Ehrlich (@Ehrls15) July 6, 2022
- In addition, the executive raised hopes that the endeavor will provide Voyager with the necessary “efficient and equitable mechanism” to cope with the challenges.
- He also informed that clients with cryptocurrencies in their accounts will receive in exchange a combination of crypto, common shares in the newly “reorganized company,” Voyager tokens, and proceeds for the Three Arrows Capital recovery.
- Last week, the firm suspended transactions, withdrawals, and loyalty rewards on its platform, citing the current adverse market conditions. Ehrlich disclosed that those functions remain temporarily paused.
