Voyager Digital & Co. File for Bankruptcy
The three businesses of Voyager Digital &, its affiliates, and the other companies listed in the court filings all filed for Chapter 11 bankruptcy.
Voyager Digital Ltd., its two subsidiaries (Voyager Digital LLC and Voyager Digital Holdings), and the cryptocurrency brokerage firm filed for Chapter 11 Bankruptcy with the Southern District of New York. The step was taken a few days after the company stopped trading, deposits, and withdrawals on its platform.
- Voyager Digital has filed for bankruptcy, following in the footsteps of other crypto lenders. It hopes to create a financial plan that would solve its debt and creditor problems and enable it to restructure its operations.
- Stephen Ehrlich, the CEO of Voyager Digital, said that Chapter 11 bankruptcy aims to give users more protection and secure their assets.
Voyagers, today we began a voluntary financial restructuring process to protect assets on the platform, maximize value for all stakeholders, especially customers, and emerge as a stronger company. Voyager will continue operating throughout.https://t.co/TxlO4eua8E
— Stephen Ehrlich (@Ehrls15) July 6, 2022
- The executive also expressed confidence that the project would supply Voyager with the "necessary efficient and equitable mechanism" to deal with those challenges.
- Mr. Smith also said that clients who have cryptocurrencies in their accounts will receive in exchange a combination of crypto, common shares in the newly "reorganized" company, Voyager tokens, and funds from the Three Arrows Capital recovery.
- Last week, the firm suspended transactions, withdrawals, and loyalty rewards on its platform because of the current adverse market conditions. Ehrlich disclosed that those functions are temporarily paused.
