Voyager Digital has turn out to be the second high-profile crypto agency to file for chapter in latest days, becoming a member of the Singapore-based Three Arrows Capital (3AC) in doing so.
The New York-based agency and its two associates, Voyager Digital LLC and Voyager Digital Holdings, took the step within the Southern District of New York late on Tuesday, in line with a filing.
Per the doc, Voyager had greater than 100,000 collectors and between $1 and $10 billion in property, with the identical vary for its liabilities.
Voyager’s inventory plunged by 11.93% because the information broke.
Final month, the corporate revealed it had a $661 million publicity to 3AC, a crypto hedge fund that failed to fulfill margin calls from a number of lenders and ultimately filed for bankruptcy on July 2.
“We strongly imagine in the way forward for the business however the extended volatility within the crypto markets, and the default of Three Arrows Capital, require us to take this decisive motion,” Digital Voyager CEO Stephen Ehrlich stated on Twitter.
We strongly imagine in the way forward for the business however the extended volatility within the crypto markets, and the default of Three Arrows Capital, require us to take this decisive motion.
— Stephen Ehrlich (@Ehrls15) July 6, 2022
Voyager quickly paused buying and selling, deposits, and withdrawals final Friday, and is now arising with a “Plan of Reorganization” that may “resume account entry and return worth to clients,” in line with Ehrlich.
“Prospects with crypto of their account(s) will obtain in trade a mixture of the crypto of their account(s), proceeds from the 3AC restoration, widespread shares within the newly reorganized Firm, and Voyager tokens,” stated Ehrlich.
The Voyager boss added that whereas the agency is “actively pursuing all obtainable treatments for restoration from 3AC,” it is able to verify “that clients with USD deposits of their account(s) will obtain entry to these funds after a reconciliation and fraud prevention course of is accomplished with Metropolitan Business Financial institution.”
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