Crypto Lender Voyager Digital Filed For Bankruptcy in the U.S.
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As predicted by many analysts and investors, after 3AC’s bankruptcy, there is yet another high-profile crypto firm that has filed for bankruptcy.
Voyager Digital Ltd, a Crypto lender, filed for Chapter 11 bankruptcy protection on July 5th, Tuesday. The bankruptcy protection has been done in the Southern District of New York and the firm has claimed that it has over 100,000 creditors and around $1 to $10 billion in assets.
As per the filings, the funds will be accessible for distribution to unsecured creditors. According to the sources, Voyager’s loan book represents roughly 50% of its total assets and also 60% of that credit book consisted of loans from Three Arrows.
Voyager Credited 3AC $675M In Bitcoins
On June 27th, Voyager handed a warning to the troubled Singapore-based crypto hedge firm Three Arrows Capital (3AC), as the firm had credited 3AC with $675 million in bitcoin and $350 million in stablecoin USDC.
As Three Arrows was unable to pay margin calls, Voyager acquired financing through the investment company of Alameda Research, the trading business formed by Sam Bankman-Fried, the billionaire CEO of cryptocurrency exchange FTX and Voyager’s key shareholder.
Alameda Ventures’ two credit facilities included $200 million worth of cash and USD Coin and 15,000 bitcoin. These were set to lapse at the end of 2024 and include a 5% annual interest rate due on expiration.
On Monday, July 4th, Voyager disclosed that it had spent $75 million of Alameda’s credit to enable client purchases and withdrawals and that it had hired investment company Moelis & Company as financial consultants.
Over a few weeks, some cryptocurrency firms, particularly lenders, have suffered solvency concerns, preventing clients from withdrawing cash.
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