Voyager Files for Bankruptcy

Voyager Digital has declared bankruptcy, the crypto lender announced on Wednesday, a week after suspending withdrawals, trading, and deposits on its platform to explore strategic alternatives.

The Toronto-listed Voyager estimated it had more than 100,000 creditors and between $1 billion and $10 billion in crypto assets in its Chapter 11 bankruptcy filing on Tuesday. The same range was also recorded for the company's liabilities.

Chapter 11 bankruptcy procedures halt all civil litigation and allow businesses to prepare turnaround plans while continuing to operate.

"The prolonged volatility and contagion in the crypto markets over the past few months, and the default of Three Arrows Capital on a loan from the company's subsidiary, Voyager Digital, LLC, require us to take deliberate and decisive action now," Voyager Chief Executive Officer Stephen Ehrlich said.

Many of the crypto industry's recent issues can be traced back to the spectacular collapse of so-called stablecoin TerraUSD in May, which saw the stablecoin and its paired token lose almost all of their value.