Crypto Broker Voyager Digital Files for Bankruptcy

Crypto broker Voyager Digital has filed for bankruptcy protection, days after suspending all trading and withdrawals on its service. From a report: Voyager announced late Tuesday that it had filed for Chapter 11 bankruptcy in New York federal court. The company said prolonged volatility in the crypto markets and the default by Three Arrows Capital on a $666 million loan from Voyager required decisive action. "This comprehensive reorganization is the best way to protect assets on the platform and maximize value for all stakeholders, including customers," Voyager CEO Stephen Ehrlich said in a statement. Three Arrows, a crypto hedge fund also known as 3AC, has itself filed for bankruptcy after being ordered to liquidate by a court in the British Virgin Islands. Three Arrows had bet big on the Terra crypto ecosystem that collapsed in value in May when its stablecoin, UST, lost its peg to the dollar. The bankruptcy for Voyager comes despite Alameda Research, a crypto company run by Sam Bankman-Fried, extending two credit lines to the crypto broker: one for about $200 million and the other for about 15,000 bitcoin.

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