Voyager Digital files for bankruptcy
2022-07-07
U.S. crypto lender Voyager Digital had filed for bankruptcy, becoming another casualty of a dramatic fall in prices that has shaken the cryptocurrency sector.
In its Chapter 11 bankruptcy filing, Toronto-listed Voyager estimated that it had more than 100,000 creditors and somewhere between $1 billion and $10 billion in crypto assets. The company also recorded the same range for its liabilities.
Voyager CEO Stephen Ehrlich said, “The prolonged volatility and contagion in the crypto markets over the past few months, and the default of Three Arrows Capital on a loan from the company's subsidiary, Voyager Digital, LLC, require us to take deliberate and decisive action now.”
Voyager boomed in the COVID-19 pandemic, drawing depositors with high interest rates and easy access to loans rarely offered by traditional banks. Last week, Voyager said it had issued a notice of default to Singapore-based crypto hedge fund Three Arrows Capital for failing to make payments on a crypto loan totalling over $650 million.
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