After Suspending Withdrawals, Voyager Digital Files for Chapter 11 Bankruptcy

The cryptocurrency brokerage firm – Voyager Digital Ltd. – and its two subsidiaries (Voyager Digital LLC and Voyager Digital Holdings) filed for Chapter 11 Bankruptcy with the Southern District of New York. The step comes a few days after the company halted trading, deposits, and withdrawals on its platform.

Voyager Digital becomes the latest crypto lender to file for bankruptcy. According to a petition, the firm seeks to create a financial plan that could solve its problems with debt and creditors and enable it to restructure its operations.
Stephen Ehrlich – the CEO of Voyager Digital – argued that the Chapter 11 Bankruptcy aims to grant users additional protection and secure their assets.

Voyagers, today we began a voluntary financial restructuring process to protect assets on the platform, maximize value for all stakeholders, especially customers, and emerge as a stronger company. Voyager will continue operating throughout.

— Stephen Ehrlich (@Ehrls15) July 6, 2022

In addition, the executive raised hopes that the endeavor will provide Voyager with the necessary “efficient and equitable mechanism” to cope with the challenges.
He also informed that clients with cryptocurrencies in their accounts will receive in exchange a combination of crypto, common shares in the newly “reorganized company,” Voyager tokens, and proceeds for the Three Arrows Capital recovery.
Last week, the firm suspended transactions, withdrawals, and loyalty rewards on its platform, citing the current adverse market conditions. Ehrlich disclosed that those functions remain temporarily paused.

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