Voyager Digital Ltd., a cryptocurrency dealer, has filed for Chapter 11 bankruptcy in New York.
The company declared bankruptcy just days after suspending withdrawals and trading on its platform. The corporation has stated that it will seek recognition for the case in Canada, where it is listed.
According to The Block, the estimated assets for Voyager Digital Holdings are between $1 billion and $10 billion, with estimated liabilities between $1 billion and $10 billion. The expected number of creditors is greater than 100,000.
Currently, three company entities are seeking protection: Voyager Digital Holdings, Voyager Digital LLC, and Voyager Digital, Ltd.
The three virtually identical petitions were filed in bankruptcy court in the Southern District of New York.
Voyager disabled users' access to withdrawals, deposits, and trading last week, citing current market conditions. “This was an incredibly difficult decision,” CEO Stephen Ehrlich stated at the time, “but we believe it is the appropriate one given present market conditions.”
Prior to the withdrawal freeze, Voyager filed a default notice to hedge fund Three Arrows Capital Ltd. for failing to repay a $650 million loan. Following the meltdown of cryptocurrencies in which it had substantially invested, the hedge fund was also ordered to liquidate.
Three Arrows also declared Chapter 15 bankruptcy last week.
According to Voyager, it is “actively pursuing all possible remedies for recovery” from Three Arrows, including court-supervised processes in the British Virgin Islands and New York.
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