(Reuters) – Voyager Digital has filed for bankruptcy, the crypto lender stated in an announcement on Wednesday, every week after suspending withdrawals, buying and selling and deposits to its platform because it sought further time to discover strategic options.
In its Chapter 11 bankruptcy submitting on Tuesday, Toronto-listed Voyager estimated that it had greater than 100,000 collectors and someplace between $1 billion and $10 billion in crypto property. The firm additionally recorded the identical vary for its liabilities.
Chapter 11 bankruptcy procedures put a maintain on all civil litigation issues and permit firms to organize turnaround plans whereas remaining operational.
“The extended volatility and contagion within the crypto markets over the previous few months, and the default of Three Arrows Capital on a mortgage from the corporate’s subsidiary, Voyager Digital, LLC, require us to take deliberate and decisive motion now,” Voyager Chief Executive Officer Stephen Ehrlich stated.
Many of the crypto trade’s latest issues might be traced again to the spectacular collapse of so-called stablecoin TerraUSD in May, which noticed the stablecoin lose virtually all its worth, together with its paired token.
(Reporting by Shivam Patel in Bengaluru; Additional reporting by Ann Maria Shibu; Editing by Sherry Jacob-Phillips)
