Cryptocurrency bank Voyager Digital files for bankruptcy protection

- Advertisement -

U.S. cryptocurrency bank Voyager Digital said on Wednesday (6) that it has filed for bankruptcy, adding to the list of companies shaken by the drastic fall in digital asset prices.

Last week, Voyager said it had issued a notice of default to Singapore-based cryptocurrency hedge fund Three Arrows Capital (3AC) for failing to make payments on a cryptocurrency loan equivalent to more than $650 million.

- Advertisement -

3AC has filed for recovery under a rule (Chapter 15) that allows foreign debtors to protect their assets in the United States, making it one of the most prominent investors hit by the drop in cryptocurrency prices.

“The volatility and prolonged contagion in cryptocurrency markets in recent months and Three Arrows Capital’s default on a loan from the company’s subsidiary, Voyager Digital, demand that we take decisive action now,” said Voyager Chief Executive Stephen Ehrlich. , in a statement.

- Advertisement -

In its filing, Voyager — based in New Jersey but listed in Toronto — estimated it had more than 100,000 creditors and between $1 billion and $10 billion in assets and liabilities of equal value.

Voyager last month signed an agreement with trading firm Alameda Ventures, founded by Sam Bankman-Fried, chief executive of brokerage FTX, for a revolving line of credit.

A document submitted to bankruptcy court in New York showed that Alameda is Voyager’s single largest creditor, with unsecured loans of $75 million.

Alameda did not immediately respond to a request for comment.

In a message to customers on Twitter, Ehrlich said the bankruptcy process will protect assets and “maximize value for all stakeholders, especially customers.”

Voyager said on Wednesday it had more than $110 million in cash and digital assets on hand. The bank intends to pay employees in the usual manner and continue its core benefits and certain customer programs without interruption.

Voyager retained Moelis & Company and The Consello Group as financial advisors, Kirkland & Ellis as legal advisor and Berkeley Research Group as restructuring advisor.

Source: CNN Brasil

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Hot Topics

Related Articles