Key points:
- Cryptocurrency Broker Voyager Digital Has Filed For Bankruptcy Protection
- Three Arrows Capital (3AC) Owed Money To Voyager
- Crypto Winter Continues To Get Colder!
The cryptocurrency broker Voyager Digital has filed for bankruptcy protection having suspended all withdrawals and trading last week. This has been driven by the “volatility and contagion” across the digital asset environment and of particular note due to money owed by the crypto hedge fund, Three Arrows Capital (3AC) which is lined up for liquidation. Just another case of the chills as the crypto winter gets ever colder!
Cryptocurrency Broker Voyager Digital Has Filed For Bankruptcy Protection
The Toronto-listed, cryptocurrency brokerage, Voyager Digital has filed for bankruptcy following the collapse of 3AC. On Tuesday they announced their plan to do so in order to undergo restructuring while under Chapter 11 protection. Voyager Chief Executive Officer, Stephen Ehrlich stated,
“This comprehensive reorganization is the best way to protect assets on the platform and maximize value for all stakeholders, including customers.”
Also Read: Crypto Crash – What to Do When the Crypto Market Crashes?
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Three Arrows Capital (3AC) Owed Money To Voyager
Voyager Digital had suffered losses of more than $650 million on a loan to Three Arrows Capital, the failed crypto investor. In the press statement, Stephen Ehrlich added that,
“While I strongly believe in this future, the prolonged volatility and contagion in the crypto markets over the past few months, and the default of Three Arrows Capital (“3AC”) on a loan from the Company’s subsidiary, Voyager Digital, LLC, require us to take deliberate and decisive action now.”
3AC had filed for Chapter 15 bankruptcy early in July, another victim of the chills being sent by the creeping crypto winter!
Crypto Winter Continues To Get Colder!
Excuse the mixing of metaphors, but as the crypto winter and freeze continues, Voyager Digital is just another domino to fall. The current contagion gripping the digital asset/ cryptocurrency environment is akin to an old-fashioned run on banks.
The list of major failures in the crypto space since May is as follows:
- Terra Luna
- Celsius
- Coinflex
- 3AC
- Voyager Digital
The real question is, should cryptocurrencies not form a base and recover from current levels, and should they suffer another significant bear market rout, could there be bigger dominoes to fall?