Cryptocurrency lender Voyager Digital filed for chapter on July 5, 2022, turning into the second firm after 3AC to declare chapter in current occasions.
Toronto (Canada)-based Voyager Digital filed for Chapter 11 chapter safety within the United States District Court docket for the Southern District of New York on the night of July 5, 2022 (US Japanese Time).
Voyager is estimated to have greater than 100,000 customers and manages belongings between $1 and $10 billion. In the meantime, the corporate’s debt can be within the vary of lower than $10 billion.
Voyager Digital CEO Stephen Ehrlich in a statement issued late Tuesday:
“Whereas I strongly consider on this future, the extended volatility and contagion within the crypto markets over the previous few months, and the default of Three Arrows Capital require us to take deliberate and decisive motion now. The chapter 11 course of offers an environment friendly and equitable mechanism to maximise restoration.”
Ehrlich later confirmed the information as effectively, declaring the corporate’s debt restructuring motion “voluntary” to “defend the belongings on the platform, the pursuits of shareholders and particularly customers,” and on the similar time confirmed will proceed to function.
Based on the debt restructuring plan introduced by Voyager, clients holding crypto belongings in company accounts will obtain a part of the remaining crypto belongings, debt recoverable from 3AC, and shares within the new Voyager firm after having restructured Voyager’s debt and tokens.
Voyager Digital beforehand mentioned that Three Arrows Capital owes itself greater than $662 million in cryptocurrency. The corporate suspended buying and selling, deposit, and withdrawal from July 2 and at last filed for chapter on July 5.
The corporate’s present belongings are $110 million in money, $350 million in financial institution accounts, and $1.3 billion in consumer crypto belongings. The corporate additionally announced that it’s going to take authorized motion to gather the debt from Three Arrows Capital.
In its chapter submitting, Voyager mentioned it owed Alameda $75 million, though on the finish of June the corporate mentioned it had borrowed $200 million in money/USDC, 15,000 Bitcoin (BTC), with a complete worth of about $485 million on the time of borrowing.
It’s value noting that Voyager’s share value has fallen by almost 90% previously month.
DISCLAIMER: The Info on this web site is supplied as common market commentary and doesn’t represent funding recommendation. We encourage you to do your personal analysis earlier than investing.
Be a part of CoinCu Telegram to maintain observe of reports: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Harold
CoinCu Information
Supply: link
