Voyager Digital (VOYG.TO) has filed for bankruptcy, the crypto lender said in a statement, a week after suspending withdrawals; trading and deposits to its platform as it sought additional time to explore strategic alternatives.
In its Chapter 11 bankruptcy filing, Toronto-listed Voyager estimated that it had more than 100,000 creditors; and somewhere between $1 billion and $10 billion in crypto assets. The company also recorded the same range for its liabilities.
Chapter 11 bankruptcy procedures put a hold on all civil litigation matters. And allow companies to prepare turnaround plans while remaining operational.
Many of the crypto industry’s recent problems can be traced back to the spectacular collapse of so-called stablecoin TerraUSD in May, which saw the stablecoin lose almost all its value, along with its paired token.
-Reuters.
