Crypto Lender Voyager Digital Files For Bankruptcy Following 3AC Loan Default
In June, 3AC was issued a default notice by Voyager after the exchange failed to make payments on a loan of 15,250 Bitcoins.
Voyager Digital, the US-headquartered crypto lending platform, has filed for bankruptcy, the company said in a statement. The announcement comes a few weeks after Voyager issued a default notice to Three Arrows Capital, popularly known as 3AC, which is a Singapore-headquartered cryptocurrency exchange. The loan default, along with the current volatility of the overall crypto market has been cited as the reason behind the bankruptcy by Voyager CEO Stephen Ehrlich. Just like Voyager, several crypto companies are finding it hard to cope with the unprecedented meltdown the overall market is facing currently.
In June, 3AC was issued a default notice by Voyager after the exchange failed to make payments on a loan of 15,250 Bitcoins, amounting to roughly $324 million, as well as USDC stablecoins worth nearly $350 million. Later that month, 3AC was formally liquated by the order of a British Virgin Islands court.
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Earlier in July, Voyager Digital announced that it is suspending crypto withdrawals, trading, and deposits on its platform. Now, the company said it has filed for bankruptcy.
Ehrlich said in a statement, “The prolonged volatility and contagion in the crypto markets over the past few months, and the default of Three Arrows Capital on a loan from the company’s subsidiary, Voyager Digital, LLC, require us to take deliberate and decisive action now.”
He also tweeted that Voyager has embarked on a “voluntary financial restructuring process” in order to “protect assets” and “maximise value for all stakeholders.” Ehrlich assured that the company will “continue operating throughout.”
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.https://t.co/TxlO4eua8E
— Stephen Ehrlich (@Ehrls15) July 6, 2022
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