Crypto broker Voyager Digital has filed for bankruptcy, with the company citing market volatility and the recent collapse of Three Arrows Digital as key drivers.
According to TechCrunch, the firm and its two affiliates said in a Chapter 11 bankruptcy filing in the Southern District of New York that it had between $1bn and $10bn in assets and over 100,000 creditors.
The company highlighted that it owed $75m to Alameda Research, as well as around $960,000 to Google. However, it did not disclose any further companies to whom it owes money.
The bankruptcy filing comes less than two months after the company raked in $60m from a private placement of common shares.
Voyager CEO Stephen Ehrlich said, “Voyager’s platform was built to empower investors by providing access to crypto asset trading with simplicity, speed, liquidity, and transparency. While I strongly believe in this future, the prolonged volatility and contagion in the crypto markets over the past few months, and the default of Three Arrows Capital on a loan from the company’s subsidiary, Voyager Digital, LLC, require us to take deliberate and decisive action now.
“The chapter 11 process provides an efficient and equitable mechanism to maximize recovery.”
Voyager said that Three Arrows Capital – a crypto hedge fund that also filed for bankruptcy last week – owed the firm over $650m. Voyager said, “Voyager is actively pursuing all available remedies for recovery from 3AC, including through the court-supervised processes in the British Virgin Islands and New York.”
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