Days after it suspended buying and selling, deposits, and withdrawals on its platform, cryptocurrency lending platform Voyager Digital LLC filed for Chapter 11 chapter safety in New York, in accordance with its court docket filing.
What Occurred: As per the petition filed by Voyager, the corporate has over $110 million in money and owned cryptocurrency property readily available, which can present liquidity to assist day-to-day operations through the Chapter 11 course of, along with greater than $350 million money held in a buyer profit account at Metropolitan Business Financial institution.
Voyager has roughly $1.3 billion of cryptocurrency property on its platform, in addition to claims towards Three Arrows Capital (3AC) of greater than $650 million.
“The extended volatility and contagion within the crypto markets over the previous few months, and the default of 3AC on a mortgage from the Firm’s subsidiary, Voyager Digital, LLC, require us to take deliberate and decisive motion now,” Stephen Ehrlich, CEO of Voyager, stated in an announcement.
Why It Issues: Voyager had earlier introduced that its subsidiary had issued a discover of default to 3AC for failure to make the required funds on its beforehand disclosed mortgage of 15,250 Bitcoin BTC/USD and $350 million in USD Cash USDC/USD.
Three Arrows filed for Chapter 15 chapter final Friday.
In response to Voyager’s reorganization proposal, prospects with cryptocurrency of their account will obtain a mix of these digital property, proceeds from the 3AC restoration, widespread shares within the newly reorganized firm, and Voyager tokens.
The plan additionally contemplates a possibility for patrons to pick the proportion of widespread fairness and crypto they may obtain, topic to sure most thresholds.
Picture by way of T. Schneider on Shutterstock
