Frost is getting stronger: Voyager Digital cryptocurrency company has launched bankruptcy proceeding
The crypto-winter on the market continues to ruin well-known companies. This morning, the Voyager Digital crypto broker filed for bankruptcy amid debts to 100,000 creditors. The company's assets are estimated in the range of $1 billion to $10 billion.
The application was filed under Chapter 11 of the U.S. Bankruptcy Code. It says that any company can declare bankruptcy on an individual basis, while not ceasing to exist, but having the right to restructure debt obligations and reorganize the business in order to continue its commercial activities.
Last Friday, Voyager Digital suspended all trading operations, deposits, withdrawals and loyalty rewards. On the same day, the company's shares fell by 26%. And since the beginning of the year, the shares have declined by more than 97%.
Shortly before that, to protect the assets of customers, Voyager received a cash loan and USDC in the amount of $200 million, as well as a revolving credit line for 15,000 bitcoins ($294 million) from Alameda Research, which belongs to FTX CEO Sam Bankman-Fried.
One of the broker's clients was the large hedge fund Three Arrows Capital, which invested in such blockchain games as Axie Infinity and Crypto Raiders. The firm owed about $650 million and at the end of last week also declared bankruptcy.
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