Sign Up on MEXC
Crypto lender Voyager Digital’s CEO Stephen Ehrlich on Wednesday said the company has commenced a “voluntary financial restructuring” process to protect assets, maximize value for its shareholders and customers, and emerge strongly. The Three Arrows Capital’s $660 million default forced the firm to file for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York.
Voyager Digital CEO Stephen Ehrlich Plans Coming Back Strongly
Crypto lender Voyager Digital announced in a series of tweets on June 6 that the prolonged volatility as a result of the bear market and the default of Three Arrows Capital led the firm to take this decisive action. However, Voyager will still continue to operate.
Moreover, the crypto lender promises to return customers’ funds, subject to court approval. Customers will receive a mix of cryptos in exchange for their crypto holdings, funds from Three Arrows Capital’s liquidation. Along with, common shares of the newly organized Voyager Digital and its tokens.
Stephen Ehrlich declared that they are working to get funds from Three Arrows Capital, including through the court-supervised bankruptcy processes in the British Virgin Islands and New York.
Furthermore, the company said it also holds $350 million of customers’ deposits in US dollars in an account at Metropolitan Commercial Bank in New York. Customers can get access to these funds after “a reconciliation and fraud prevention process.”
Voyager Digital will continue to operate some business operations and projects. But, trading, deposits, withdrawals, and loyalty rewards remain temporarily suspended.
He believes the bankruptcy filing will help Voyager emerge as a stronger company.
“This well-established legal process whereby companies reorganize their financial obligations to emerge as stronger organizations, provides an efficient & equitable mechanism to maximize recovery. Our goal is to come out a stronger organization.”
Impact of Voyager’s Bankruptcy on FTX and Sam Bankman-Fried
According to the filing, Voyager’s estimated assets are between $1 billion and $10 billion, with liabilities worth the same value. Also, it has more than 100,000 creditors.
The filing made Alameda Research, a trading firm owned by FTX founder Sam Bankman-Fried, as the largest unsecured creditor. Sam Bankman-Fried committed to bailout Voyager Digital with a $75 million credit from Alameda.
As per Forbes, Alameda Ventures does not expect repayment of the capital. “You know, we’re willing to do a somewhat bad deal here, if that’s what it takes to sort of stabilize things and protect customers,” Sam Bankman-Fried told Forbes in an interview.
After Voyager, the FUD on Celsius being next to file bankruptcy is rising.
- Ethena Labs Secures Fresh Funding From ArkStream Capital, ENA Price Spikes
- SEC Forms International Task Force to Crack Down on Pump-and-Dump Schemes
- Justin Sun Pledges $20M Buy Following WLFI Wallet Freeze
- Expert Blames ‘Secret Committee’ for Rejecting MSTR Stock Inclusion to S&P 500
- MARA Bitcoin Treasury Nears $6 Billion, Trails Only Strategy in Public Rankings
- Chainlink Price Eyes $55 as Reserve Holdings Jump With 43,937 LINK Addition
- Cardano Price Targets 30% Surge as Top Economist Calls for Fed Cut
- ETH Price Forecast as Grayscale’s Covered Call Ethereum ETF Spurs Optimism — Is $8,500 in Sight?
- Bitcoin Price Prediction as SEC Unveils Agenda for Crypto Regulation — Is $200K Next?
- ONDO Price Prediction Amid Bitget Collaboration on Tokenized Stocks and ETFs: Is $2 Next?
