Voyager Digital is the second high-profile crypto company to file for bankruptcy in recent days, joining Singapore-based Three Arrows Capital (3AC).
According to a filing, the New York-based company and two of its subsidiaries, Voyager Digital LLC and Voyager Digital Holdings, made the move late Tuesday night in the Southern Borough of New York.
According to the document, Voyager had more than 100,000 creditors and assets ranging from $1 billion to $10 billion, with similar limits for its liabilities.
Voyager stock fell 11.93% when the news broke.
Last month, the company announced that it had taken a $661 million risk for 3AC, a crypto hedge fund that failed to make margin calls from multiple lenders and eventually filed for bankruptcy on July 2.
“We strongly believe in the future of the industry, but due to the ongoing volatility in the crypto markets and the default of Three Arrows Capital, we need to take these crucial actions,” Stephen Ehrlich, CEO of Digital Voyager, said on Twitter.
Voyager temporarily halted trading, deposits and withdrawals last Friday and is now developing a “restructuring plan” that Ehrlich says will “restart account access and return value to customers.”
“Customers with crypto in their account(s) will receive proceeds from the recovery of 3AC, common stock of the reorganized company, and Voyager tokens in exchange for combining the crypto in their account(s),” Ehrlich said.
Voyager Boss said that while the company is “actively pursuing any available recovery action from 3AC,” it is able to confirm that “customers with USD deposits in their accounts will have access to those funds following a reconciliation.” Access is maintained and the fraud prevention process with the Metropolitan Commercial Bank is complete.”
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