Crypto lender Voyager Digital has filed for Chapter 11 chapter. The corporate defined that the “extended volatility and contagion within the crypto markets” and the default of crypto hedge fund Three Arrows Capital (3AC) on a mortgage require it “to take deliberate and decisive motion now.”
Voyager’s Chapter Submitting
Voyager Digital Ltd. (TSE: VOYG) introduced Wednesday that it has filed for Chapter 11 chapter. The announcement particulars:
The corporate and its foremost working subsidiaries filed voluntary petitions for reorganization underneath Chapter 11 within the U.S. Chapter Court docket of the Southern District of New York.
As well as, the corporate mentioned it “intends to hunt recognition of the Chapter 11 case of Voyager within the Ontario Superior Court docket of Justice,” the announcement provides.
A case filed underneath Chapter 11 of america Chapter Code is incessantly known as a “reorganization” chapter. This kind of chapter places a maintain on all civil litigation issues and permits firms to arrange restructuring plans whereas remaining operational.
In its submitting, New Jersey-based Voyager estimated that it has greater than 100,000 collectors. Alameda Analysis was the crypto lender’s largest single creditor, with unsecured loans of $75 million. As well as, Voyager mentioned it has between $1 billion and $10 billion in property, and liabilities value the identical worth.
Stephen Ehrlich, CEO of Voyager, defined:
The extended volatility and contagion within the crypto markets over the previous few months, and the default of Three Arrows Capital (‘3AC’) on a mortgage from the corporate’s subsidiary, Voyager Digital, LLC, require us to take deliberate and decisive motion now.
Voyager suffered enormous losses from its publicity to Singapore-based crypto hedge fund Three Arrows Capital. Final week, the crypto lender mentioned it had issued a discover of default to 3AC for failing to make required funds on a mortgage of 15,250 bitcoin (roughly $307 million primarily based on the value of BTC on the time of writing) and $350 million value of stablecoin USDC. Nevertheless, on July 1, 3AC filed for chapter 15 chapter, which permits international debtors to defend U.S. property.
Final week, Voyager suspended all buying and selling, deposits, and withdrawals on its platform, citing “present market situations.” A number of different crypto companies have equally halted withdrawals, together with Celsius Community, Babel Finance, and Vauld. The latter obtained a takeover bid from rival agency Nexo on Tuesday.
On the time of writing, Voyager’s inventory is down 97.8% year-to-date.
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