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    US crypto firm Voyager Digital files for bankruptcy protection

    Voyager Digital, a US-based crypto lender, has filed for bankruptcy protection, just days after it suspended all trading, deposits and withdrawals on its platform.

    Voyager Digital files for bankruptcy

    Voyager Digital files for bankruptcy protection

    The company says in a statement that it has “filed voluntary petitions for Chapter 11 protection to implement restructuring” in the US Bankruptcy Court of the Southern District of New York.

    “This comprehensive reorganisation is the best way to protect assets on the platform and maximise value for all stakeholders, including customers,” says Stephen Ehrlich, CEO of Voyager.

    “The Chapter 11 process provides an efficient and equitable mechanism to maximise recovery.”

    The reorganisation plan, subject to change and court approval, would help resume account access and return value to customers, the firm says.

    Voyager Digital says it has over $110 million of cash and owned crypto assets on hand, which will “provide liquidity to support day-to-day operations during the Chapter 11 process”.

    It also claims to have more than $350 million of cash held in the For Benefit of Customers (FBO) account at Metropolitan Commercial Bank and approximately $1.3 billion of crypto assets on its platform, plus claims against Three Arrows Capital (3AC) of more than $650 million.

    Voyager Digital LLC previously issued a notice of default to 3AC for failure to make the required payments on its previously disclosed loan of 15,250 Bitcoin (BTC) and $350 million worth of USD Coin (USDC).

    “Voyager is actively pursuing all available remedies for recovery from 3AC, including through the court-ordered liquidation process in the British Virgin Islands,” the firm says.

    Under the reorganisation plan, Voyager customers with crypto in their accounts will receive in exchange a combination of the crypto in their accounts, proceeds from the 3AC recovery, common shares in the newly reorganised company and Voyager tokens.

    Voyager has become the latest in a line of crypto firms to fall on hard times due to current market conditions – the most recent ones being Vauld and Celsius.

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