Toronto: Voyager Digital has filed for bankruptcy, the crypto lender said in a statement on Wednesday, a week after it suspended withdrawals, trading and deposits on its platform as it sought additional time to explore strategic options.
In its Chapter 11 bankruptcy filing on Tuesday, Toronto-listed Voyager estimated it had more than 100,000 creditors and somewhere between $1 billion and $10 billion in crypto assets. The company also recorded the same limit for its liabilities.
Chapter 11 bankruptcy procedures put a halt to all civil litigation matters and allow companies to devise turnaround plans while they are running.
“Prolonged volatility and transition, and default in crypto markets over the past few months three arrow capital On loan from Voyager Digital, a subsidiary of the company, LLCNow we need to take deliberate and decisive action,” said Voyager Chief Executive Officer Stefan Ehrlich.
Many of the recent problems facing the crypto industry can be traced back to the spectacular collapse of the so-called stablecoin TeraUSD in May, which saw the stablecoin lose almost all of its value along with its paired tokens.
FacebookTwitterinstagramKu APPyoutube