Voyager Digital has become the second high-profile crypto firm to file for bankruptcy in recent days, joining Singapore-based Three Arrows Capital (3AC) in doing so.
According to a filing, the New York-based firm and two of its affiliates, Voyager Digital LLC and Voyager Digital Holdings, made the move late Tuesday night in the Southern District of New York.
According to the document, Voyager had more than 100,000 creditors and between $1 and $10 billion in assets, with similar limits for its liabilities.
Voyager stock fell 11.93% as the news broke.
Last month, the company disclosed that it had $661 million at risk for 3AC, a crypto hedge fund that failed to meet margin calls from multiple lenders and eventually filed for bankruptcy on July 2.
“We strongly believe in the future of the industry, but we need to take this decisive action due to prolonged volatility in the crypto markets and the default of Three Arrows Capital,” Digital Voyager CEO Stephen Ehrlich said on Twitter.
Voyager temporarily halted trading, deposits and withdrawals last Friday, and is now coming up with a “restructuring plan” that will “resume account access and return value to customers,” according to Ehrlich.
“Clients with crypto in their account(s) will receive proceeds from 3AC recovery, common shares in the newly reorganized company, and Voyager tokens, in exchange for combining the crypto in their account(s),” Ehrlich said.
Voyager Boss said that while the firm is “actively pursuing all available measures for recovery from 3AC,” it is in a position to confirm that “customers with USD deposits in their accounts will have access to those funds after a reconciliation.” access will be received and the fraud prevention process with Metropolitan Commercial Bank is complete.”
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