Voyager Digital Holdings, the US-based operator of a crypto platform Voyager Digital, and two affiliated debtors filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code, per Stretto, a bankruptcy specialist, data.
Both estimated liabilities and assets are in the range of USD 1bn and USD 10bn, per Bloomberg Law data.
No further details were provided.
Chapter 11 generally provides for reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time.
As reported, last week, Voyager Digital, said it is “temporarily” suspending trading, deposits, withdrawals, and loyalty rewards.
“This decision gives us additional time to continue exploring strategic alternatives with various interested parties while preserving the value of the Voyager platform we have built together. We will provide additional information at the appropriate time,” Stephen Ehrlich, CEO of Voyager, was quoted as saying back then.
Also as reported, the company’s exposure to troubled crypto fund Three Arrows Capital consists of BTC 15,250 (USD 307) and USDC 350m, while they also entered into a multi-million credit line agreement with Alameda Ventures, a quantitative trading firm and the parent company of the FTX exchange.
Source: Cryptonews
