Crypto lender Voyager files for bankruptcy

Stephen Ehrlich, CEO and co-founder of Voyager Digital Limited, speaks during the Piper Sandler Global Exchange and FinTech Conference in New York City, US, June 8, 2022. REUTERS/Brendan McDermid

July 6 (Reuters) – Voyager Digital (VOYG.TO) has filed for bankruptcy, Voyager Digital (VOYG.TO) said in a statement on Wednesday, a week after it suspended withdrawals, trading and deposits on its platform as it sought more Time to explore strategic alternatives.

In its Chapter 11 bankruptcy filing on Tuesday, Toronto-listed Voyager estimated it had more than 100,000 creditors and between $1 and $10 billion in crypto assets. The company also recorded the same scope of its obligations.

Chapter 11 bankruptcy proceedings put a hold on all civil litigation matters and allow companies to prepare turnaround plans while business continues.

“The prolonged volatility and contagion in the cryptocurrency markets over the past few months, and the default on three Capital shares seeking a loan from the company’s subsidiary, Voyager Digital, LLC, requires us to take deliberate and decisive action now,” said Officer Stephen Ehrlich.

Many of the recent problems in the crypto industry can be traced back to the stunning crash of the so-called Stablecoin TerraUSD in May, which saw the stablecoin lose nearly all of its value, along with its double token. Read more

Additional reporting by Shivam Patel in Bengaluru; Additional reporting by Anne-Maria Shipu; Editing by Sherry Jacob Phillips

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