U.S. crypto lenders Voyager Digital on Wednesday filed a bankruptcy notice. With this Voyager became another victim of the effects of the market fall in the price of cryptocurrencies.
Cryptocurrency lenders like Voyager are fast-growing companies in the COVID-19 pandemic phase. The high interest rate offerings and easy access to loans rarely offered by traditional banks have attracted many customers. However, unfortunate not to smell, the recent downturn in the crypto market has affected many crypto companies especially those that lend.
New Jersey -based Celsius in June had frozen production and had hired advisers to avoid bankruptcy filings. Voyager this month has frozen production in line with the actions of another lender, Vauld Singapore.
Last week, Voyager announced that they had issued a bankruptcy notice to Hedge Fund Three Arrows Capital (3AC) for failing to make payments for crypto loans totaling more than $ 650 million. 3AC that week filed a bankruptcy notice in which it dismissed a large company.
In its Chapter 11 bankruptcy filing on Tuesday, Voyager estimated that they have more than 100,000 creditors who are on average worth between $ 1 billion and $ 10 billion in assets and liabilities.
This Chapter 11 bankruptcy procedure withholds all matters of civil litigation and allows the company to prepare a recovery plan while it is still in operation.
Voyager said on Wednesday it has more than $ 110 million in cash and crypto assets. They plan to pay employees and continue their work. Voyager has hired Moelis & Company and The Consello Group as financial advisor, Kirkland & Ellis LLP as legal advisor and Berkeley Research Group LLC as operational restructuring advisor.
