Voyager Files For Bankruptcy Protection

The bitcoin broker and lender located in the United States that has filed for protection under the bankruptcy code is the latest domino to fall in the ailing cryptocurrency market.

As soon as the news came, shares of Voyager fell by 11.93 percent.

Earlier this month, the business announced that it had $661 million in exposure to 3AC, a crypto hedge fund that failed to pay margin calls from various lenders, and filed for bankruptcy on July 2.

Three Arrows Capital, the company’s largest creditor, went bankrupt last week, defaulting on a debt of 15,250 BTC and $350 million USDC. There are “all possible options” available to Voyager to recover the monies, including court-supervised proceedings in the British Virgin Islands and New York, according to Voyager.

Customers at New York’s Metropolitan Commercial Bank have access to more than $350 million in cash held by the firm, according to a statement. According to the said statement, Voyager had between $1 and $10 billion in assets and over 100,000 creditors, with liabilities falling within the same range.

“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,” said Voyager’s chief executive, Stephen Ehrlich.

Withdrawal restrictions have been imposed on a number of cryptocurrency organizations recently, including some lenders. Celsius said in mid-June that it would put a halt to withdrawals, which started the trend. Restrictions on withdrawals have been issued by CoinLoan, CoinFLEX, and Voyager themselves in recent days.

Voyager has joined Three Arrows Capital in a bankruptcy case. Three Arrows, on the other hand, filed a Chapter 15 case related to the ongoing liquidation action in a British Virgin Islands court.