Voyager Digital caves and files for Chapter 11 bankruptcy

2022-7-6 12:30

Crypto platform Voyager Digital filed for Chapter 11 bankruptcy on July 5 in the Southern District of New York.

The company made the move four days after another significant industry player, Three Arrows Capital (3AC), filed for bankruptcy after being unable to pay an $80 million margin trading debt to derivative exchange Deribit.

According to a press release dated June 27, 3AC owed Voyager 15,250 Bitcoin and $350 million USDC and failed to keep up with repayments.

“Voyager Digital LLC,  has issued a notice of default to Three Arrows Capital (“3AC”) for failure to make the required payments on its previously disclosed loan of 15,250 BTC and $350 million USDC.”

Voyager CEO said this will “maximize recovery”

Recent weeks have seen CeFi firms announce withdrawal freezes to stem liquidity outflows. The industry is on tenterhooks regarding which firms are affected and what happens next.

In Voyager’s case, there were glimmers of hope the firm could stay solvent following a $200 million loan from Alameda Ventures on June 22. Recent news that Voyager had reopened withdrawals for customers who had submitted requests before their suspension on June 30 was another positive development.

However, the announcement of filing Chapter 11 bankruptcy on Tuesday was a blow for Voyager stakeholders.

Voyager CEO Stephen Ehrlich gave a statement in which he blamed market volatility and 3AC’s loan default. He described the bankruptcy filing as a “deliberate and decisive action” to “maximize recovery.”

“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 (“3AC”) on a loan from the Company’s subsidiary, Voyager Digital, LLC, require us to take deliberate and decisive action now. The chapter 11 process provides an efficient and equitable mechanism to maximize recovery.”

Chapter 11 bankruptcy

Chapter 11 refers to a type of bankruptcy that allows the debtor to reorganize its business. More relevantly, in most cases, the company stays operational while the recovery plan is prepared, which keeps cash flow going and aids in the repayment process.

During such a proceeding, the court often helps the business restructure its debts and obligations. But this also means certain decisions, for example, the sale of assets, cannot be actioned without the court’s say-so.

“This version of bankruptcy gives the debtor a fresh start. However, the terms are subject to the debtor’s fulfillment of its obligations under the plan of reorganization.”

The court filing shows the company “believes” there is sufficient capital to pay “unsecured creditors.” Voyager customers fall under this category.

The post Voyager Digital caves and files for Chapter 11 bankruptcy appeared first on CryptoSlate.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Digital Rupees (DRS) на Currencies.ru

$ 6.38E-5 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $6.38E-5 - H: $6.38E-5
Капитализация $32.611k Rank 99999
Доступно / Всего 510.803m DRS

chapter bankruptcy voyager digital caves cryptoslate new

chapter bankruptcy → Результатов: 17


Crypto “bank” Cred files for bankruptcy after alleged multimillion fraud case

Crypto lending firm Cred filed for a voluntary Chapter 11 case in the United States Bankruptcy Court for the District of Delaware to explore strategic alternatives, including, without limitation, the restructuring of its balance sheet or the sale of its business as a going concern, in a court-supervised process, it said in a release on […] The post Crypto “bank” Cred files for bankruptcy after alleged multimillion fraud case appeared first on CryptoSlate.

2020-11-9 15:10


Cryptopia Limited Files for US Bankruptcy Protection Following Massive Hack in Early 2019

Cryptopia Limited was hacked multiple times in the first quarter of 2019. The shareholders of Cryptopia have decided to file for bankruptcy in a Chapter 15 case in New York. The hacking of the Cryptopia exchange made headlines in January after a massive attack took $16 million from the exchange. The exchange was the host […]

2019-5-25 04:41


US-based bitcoin mining firm Giga Watt has declared bankruptcy

Giga Watt, US-based bitcoin mining firm, has declared bankruptcy with millions still owed to creditors, Coindesk reported. On Monday, the firm filed for Chapter 11 bankruptcy at a court in the Eastern District of Washington, revealing that it still owes its biggest 20 unsecured creditors nearly $7 million in court documents. Creditors include the utilities […]

2018-11-21 18:56