Crypto Brokerage in Financial Difficulty Applies for Bankruptcy Protection

Trading of Voyager Digital (VOYG) stocks has been suspended in Toronto, while the exchange begins an expedited review to determine if the stock is still eligible for trading. Trading has also been halted on OTC Markets in the U.S.

• The Investment Industry Regulatory Organization of Canada (IIROC) announced that trading of Voyager Digital (VOYG.TO) on TSX had been halted as of 8 a.m. ET on Wednesday. The Toronto Stock Exchange later announced that an expedited delisting review had begun, and shares were also halted in the U.S., where they trade under the ticker VYGVF at OTC Markets.
• Late Tuesday, the company filed for Chapter 11 bankruptcy protection in the Southern District of New York. It is estimated that it has between $1-10 billion in assets and liabilities, as well as more than 10,000 creditors.
• Three Arrows Capital (3AC), which Voyager CEO Steven Ehrlich blamed for most of the company's issues, is estimated to have a loan book that is about 60% of the crypto broker's total loan portfolio. On July 1, 3AC filed for bankruptcy after a court order in British Virgin Islands ordered its liquidation.
• Voyager, like Celsius Network, has suffered severe losses following the downturn in the crypto markets in recent weeks. The downturn culminated in Voyager suspending trading, deposits, and withdrawals at the start of this month.
• CoinDesk was not immediately informed of Voyager's response to its query.