V Voyager Digital files for bankruptcy

Reuters- Voyager Digital filed for bankruptcy on Wednesday, a week after suspending withdrawals, trading and deposits to its platform as it sought more time to explore strategic alternatives.

In its Chapter 11 bankruptcy filing on Tuesday, Toronto-listed Voyager estimated that it had more than 100,000 creditors and somewhere between $1 billion and $10 billion in 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.

The long-term volatility and contagion in the criptocurrency markets over the past few months, and the default of Three Arrows Capital on a loan from Voyager Digital, LLC, requires us to take deliberate and decisive action now, according to Stephen Ehrlich, Voyager Chief Executive Officer.

The collapse of the so-called stable coin, TerraUSD, saw the stable coin lose almost all its value, along with its paired token, a cause of many recent problems in the industry.