Voyager Digital Ltd., cryptocurrency broker, stated that it has filed Chapter 11 bankruptcy in New York.
The company suspended trading and withdrawals on its platform days before filing for bankruptcy. According to the company, it intends to seek recognition of its case in Canada, where it is listed.
According to The Block’s petition for Voyager Digital Holdings (PDF), estimated assets range from $1 billion up to $10 Billion, with approximately $1 billion to $10 Billion in estimated liabilities. It is estimated that there are more than 100,000 creditors.
Three business entities, Voyager Digital Holdings, Voyager Digital LLC, and Voyager Digital, Ltd., are currently seeking protection.
These three petitions, which were largely identical, were filed through the Southern District of New York bankruptcy court.
Voyager stopped users from trading, withdrawing, depositing and depositing last week due to market conditions. CEO Stephen Ehrlich stated that while it was difficult, the decision was the right one considering current market conditions.
Voyager had previously sent a notice to Three Arrows Capital Ltd. regarding the default of $650 million loan repayments. After the crash of cryptocurrency prices, the hedge fund was also required to liquidate.
Three Arrows filed Chapter 15 bankruptcy last Wednesday.
Voyager stated that it was “actively seeking all available remedies to recover” Three Arrows from Voyager, including court-supervised process in New York and British Virgin Islands.