Crypto Lender Voyager Digital Bankruptcy Files


 U.S. cryptocurrency lender Voyager Digital (VOYG.TO) announced on Wednesday that it has filed for bankruptcy. Cryptocurrency lenders like Voyager have thrived during the COVID-19 pandemic, attracting savers with high interest rates and easy access to credit rarely offered by traditional banks.


New Jersey-based Celsius froze withdrawals in June and hired advisers who could file for bankruptcy protection. Voyager froze withdrawals this month, as did Singapore-based Vault, another bank. Last week, Voyager announced that it had issued a formal notice of default to Three Arrows Capital (3AC) for defaulting on crypto loans totaling more than $650 million.


'Continued volatility and contagion in the crypto market over the past few months, as well as Three Arrows Capital’s default on loans,' said Voyager CEO Stephen Ehrlich. New Jersey-based but Toronto-listed Voyager estimated it had more than 100,000 creditors with between $1 billion and $10 billion in assets and the same value in liabilities.


Voyager last month signed a revolving line of credit agreement with Alameda Ventures, a trading firm founded by FTX CEO Sam Bankman-Fried. Alameda is Voyager's largest single creditor with a $75 million unsecured loan, according to a filing with the U.S. Bankruptcy Court.


Voyager said Wednesday that it has more than $110 million in cash and crypto assets on hand. It intends to pay employees in the usual way and to continue its core services and certain customer programs without interruption. Voyager has retained Moelis & Company and The Consello Group as financial advisors.


Voyager said Wednesday that it has more than $110 million in cash and crypto assets on hand. It intends to pay employees in the usual way and to continue its core services and certain customer programs without interruption. Voyager has retained Moelis & Company and The Consello Group as financial advisors, Kirkland andamp; Ellis LLP as legal advisor and Berkeley Research Group LLC as restructuring advisor.


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