Crypto Lender "Voyager" Applies for Bankruptcy
The fall in Cryptocurrencies over the past few months has affected the financial position of many firms in this segment. Voyager Digital, the crypto lending firm that stopped customer transactions last week, has applied for bankruptcy. In this regard, the firm says that it is looking at other options as well.
In the application for bankruptcy, Voyager Digital stated that it has more than one lakh creditors. The application has been made under Chapter 11 of Bankruptcy, which bars all legal matters and allows the firm to run as well as prepare a loss recovery plan. It is worth noting that the crypto industry in India is also grappling with declining volumes, taxes, and the implementation of new TDS rules.
Let us inform you that due to the filing of bankruptcy, all the ongoing cases against the company have been suspended as of now. Not only this, the company has now got permission to prepare a plan to bring the company back on track. Last week crypto hedge fund Three Arrows Capital (3AC) filed bankruptcy for Chapter 15.