Voyager was digital Suspended From trading on the Toronto Stock Exchange on Wednesday to give Canadian regulators time to review the company’s listing requirements.
Trading came to a halt on Wednesday morning following the crypto broker’s decision to file for Chapter 11 bankruptcy, along with affiliates Voyager Digital LLC and Voyager Digital Holdings in the Southern District of New York, a day earlier.
Voyager, whose market capitalization is over $51 million, its share price fell 27% to $.26 in the five trading days leading up to the delisting. The company’s shares are down more than 99% since peaking around $27 in March 2021. The day before VYGVF was delisted, trading volume increased more than three times its average rate to 5 million compared to 1.5 million. yahoo finance,
The company’s bankruptcy comes less than a week after Singapore-based cryptocurrency hedge fund, Three Arrows Capital (3AC), declared bankruptcy. declared bankrupt,
Voyager CEO Stephen Ehrlich cited the collapse of 3AC as one of the reasons for the need to restructure Voyager. one in Tweet He added: “We believe strongly in the future of the industry but prolonged volatility in the crypto markets and the default of Three Arrows Capital requires us to take this decisive action.”
Voyagers, today we embarked on a voluntary financial restructuring process to safeguard assets on the platform, maximize value for all stakeholders, especially customers, and emerge as a stronger company. Voyager will be operating full time. https://t.co/TxlO4eua8E
Voyager revealed last month that it had $661 million in exposure to 3AC, which went bankrupt after failing to meet margin calls from multiple investors. At the end of June, Voyager had $1.12 billion in debt and $685 million in crypto assets, according to preliminary data Markets provided in the update, saying that it is “unsure how much Voyager will be able to recover from the 3AC.”
In the same statement made last Friday, Voyager said it would have to temporarily suspend trading, deposits, withdrawals and loyalty rewards for customers.
“It was a very difficult decision, but we believe it is the right one given the current market conditions,” Ehrlich said in the update. “This decision gives us additional time to continue exploring strategic options with various interested parties while preserving the value of the Voyager platform.”
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