Like itsnamesake , Voyager Digital wanted to go where few crypto trading company have gone before , to truly make crypto “ mainstream ” with items like debit entry and citation cards that pull in users crypto rewards . rather of going “ to the moon ” and beyond , Voyager is consume a parabolic trajectory back down to where many trading political platform are presently channelize : directly into the dirt .
The New Jersey - based companyannouncedearly Wednesday it had filed for Chapter 11 bankruptcy protection in New York , and intends to search identification of the cause in Ontario Superior Court . Chapter 11 is a classification of failure that allow companies to “ reorganize ” or , more succinctly , get their s * * * in order while avert the pesky demands of creditor .
Documentsfiled with the New York southern territorial dominion bankruptcy court Tuesday show that the company had more than 100,000 creditor as well as between $ 1 and $ 10 billion in both assets and liability . filing show Voyager ’s crowing creditor was Alameda Research Ventures , a crypto dealer that holds an over 9 % equity stake in the company with a claim of $ 75 million .
Photo: Justin Sullivan (Getty Images)
Things have not been going great for Voyager since the starting signal of the ongoing “ crypto wintertime . ” The company had previouslyrestricted withdrawalson its platform , limiting users to just $ 10,000 in a 24 - time of day period before finallysuspending all tradingactivity on its platform tout ensemble July 1 . One big issue is that company executives claim that Three Arrows Capital , a crypto - centric hedge investment trust owes them quite a lot of money . Three Arrows wasordered to liquidateits assets after pile up a mountain of demands they repay millions of dollars it owe to crypto cash in hand . Voyager has said Three Arrows owes it a “ beastly ” number of bitcoin equaling $ 666 million .
In a release , Voyager CEO Stephen Ehrlich say the move is due to “ the keep up volatility and contagion in the crypto markets over the preceding few month as well as the default happen over at Three Arrows on a loanword from the Company ’s subsidiary . ” Ehrlich said that declaring failure “ is the best way to protect asset on the platform , ” and protect stakeholders and customers .
Ehrlich further said in their propose reorganization plan , client that still have crypto in their accounts ( which is probable , seeing that the company had previously stem withdrawals ) will see a reappearance on their assets through a compounding of crypto , proceeds from Three Arrows ’ liquidation , and shares in the newly reorganize Voyager .
The company did not break a timeline for on the nose when any of that is imagine to happen , and it ’s all subject to change depending on what happens with Three Arrows settlement . Just this workweek , Three Arrows filed for its own set ofbankruptcy protectionsto protect its U.S.-based plus .
Voyager also said customer with USD coin in their accounts will regain access code once they sort thing out with its banking concern . Again , the company did not say when that might happen , and it currently leave users ineffectual to get at the plus salt away in their account statement .
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— Cryptoliver ( @Soporte24500Btc)July 6 , 2022
The on-going crypto bear market has caused a bit of crypto trading companies to limit withdrawal to keep their platforms from going under . Just this preceding calendar week , CoinLoan and Vauldboth restricted its drug user from snatching their own stake of the dragon ’s hoard . antecedently , trading chopine Coinflex , Celsius , and Binancehad restricted coitus interruptus as well .
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