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Saturday, September 24, 2022

Voyager Digital Has Filed For Bankruptcy

Voyager Digital, the crypto exchange, recently filed for bankruptcy under Chapter 11 at the Southern District Court in New York.

This decision came after they paused trading, deposits, and withdrawals. The Chapter 11 bankruptcy by this crypto firm does indicate that it is definitely on the hook for anywhere from a sum of $1 billion to $10 billion in assets that have more than 100,000 creditors. The troubled crypto exchange certainly didn’t waste even a single moment filing for bankruptcy after the United States holiday on Tuesday. In a statement that was made on Wednesday, the company went on to explain that this move was a big part of their entire plan of reorganization. When this was implemented, the plan would allow their clients to take up their accounts again. 

Voyager Digital Has Filed For Bankruptcy

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The CEO of Voyager Digital then went on to explain the proposed plan which included customers with crypto in their account receiving a vast combination of crypto tokens. They would also be receiving proceeds from the recovery from Three Arrows Capital, as well as common shares in the newly reorganized company- along with tokens from the crypto platform. He further added that customers who dealt with US dollars in their accounts would definitely be able to access the funds after they went through a reconciliation and fraud prevention process.

Voyager Digital stated that it had every intention of paying the employees in the usual manner and would further continue its primary benefits and customer programs without any disruption. However, as mentioned previously, deposits, trading, loyalty, and withdrawals will remain suspended. Some of the major signs that the company was facing headwinds came after the lending platform went through a $500 million loan agreement with Alameda Research.

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