Claim $500Breaking: Voyager Digital Enters Bankruptcy After Three Arrows Meltdown
Crypto lender Voyager Digital Holdings filed for bankruptcy on Wednesday, as its exposure to beleaguered hedge fund Three Arrows Capital devastated its finances.
The lender filed for Chapter 11 bankruptcy in the Southern District of New York, according to a court filing.
The firm’s estimated assets are over $1 billion, and it has more than 100,000 creditors. The move comes shortly after the crypto lender suspended withdrawals on its its platform.
Voyager had a massive exposure to Three Arrows Capital, which is also in the process of negotiating a bankruptcy. Three Arrows had recently defaulted on a $660 million loan from Voyager, which is also likely behind the lender’s recent filing.
Voyager bankruptcy spells trouble for crypto
Bitcoin and Ethereum prices dropped in response to Voyager’s filing, with BTC falling back below $20,000. The filing likely spells more pressure on crypto markets, as a bulk of Voyager’s assets are now likely to be liquidated to repay its debtors.
Currently, it appears that Alameda Research is Voyager’s biggest creditor, after the trading desk gave a $500 million credit line to the crypto lender. Voyager had taken about $75 million from the facility.
The bankruptcy also potentially places pressure on Alameda’s finances, which could in turn have a ripple effect across crypto markets. The broker was founded by FTX CEO Sam Bankman-Fried.
FTX has also attempted to rescue other beleaguered crypto firms, including BlockFi.
Crypto bear market logs more casualties
Voyager is only the latest casualty of the crypto bear market. In June, lender Celsius was the first to suspend withdrawals. This was followed by Three Arrows Capital and several other exchanges declaring a severe lack of funds.
This cascade of insolvencies comes as crypto markets logged an over 60% decline in value this year. This exposed several overleveraged players to margin calls, which they were unable to meet due to declining crypto prices.
Voyager, Three Arrows and BlockFi have received much flak over facilitating high-risk loans, with little scope of recovery amid the bear market.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Peter Schiff Warns Bitcoin Could Mirror Silver’s Rise In Reverse
- Trump Declares Tariffs Creating “Great Wealth” as Fed Rate Cut Odds Collapse to 14%
- Grok AI: Post-2020 Gold & Silver Peak Sparked Epic Gains in BTC, NASDAQ, and S&P
- Fed Pumps $2.5B Overnight—Will Crypto Market React?
- Crypto-Based Tokenized Commodities Near $4B Milestone as Gold and Silver Hit Record Highs
- Pi Network Price Holds $0.20 After 8.7M PI Unlock, 19M KYC Milestone-What’s Next?
- XRP Price Prediction Ahead of US Strategic Crypto Reserve
- Ethereum Price Prediction Ahead of the 2026 Glamsterdam Scaling Upgrade – Is $5,000 Back in Play?
- Cardano Price Eyes a 40% Surge as Key DeFi Metrics Soar After Midnight Token Launch
- FUNToken Price Surges After MEXC Lists $FUN/USDC Pair
- Bitcoin Price on Edge as $24B Options Expire on Boxing Day — Is $80K About to Crack?
