Cryptocurrency broker Voyager Digital Ltd. has become the latest firm to face in practice consequences of the recent market turmoil as it has filed for bankruptcy under chapter 11 "to maximize value for all stakeholders."
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The US-based firm has filed the petition in the US Bankruptcy Court of the Southern District of New York. Voyager CEO, Stephen Ehrlich, said that the bankruptcy is the "best way to protect assets on the platform and maximize value for all stakeholders." He added:
"While I strongly believe in this future, 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 Voyager Digital, LLC require us to take deliberate and decisive action now."
If and when the proposed plan of reorganization approved, it would, upon implementation, resume account access and return value to customers, Voyager emphasizes. According to the firm's estimations, it has approximately $1.3 billion of crypto assets on its platform. However, the firm also noted that the plan is still subject to change.
The move comes after the notorious crypto hedge fund Three Arrows Capital (3AC) also filed a petition for bankruptcy, but under chapter 15 of the US Bankruptcy Code. Earlier in June, a court in the British Virgin Islands ordered the liquidation of 3AC as the fund failed to repay required hundreds of millions of dollars to its creditors.
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