New Zealand markets open in 2 hours 50 minutes
  • NZX 50

    11,702.81
    -25.66 (-0.22%)
     
  • NZD/USD

    0.6286
    +0.0045 (+0.72%)
     
  • ALL ORDS

    7,259.50
    +9.20 (+0.13%)
     
  • OIL

    90.45
    +1.44 (+1.62%)
     
  • GOLD

    1,804.10
    +12.90 (+0.72%)
     

Crypto lender Voyager Digital files for bankruptcy

STORY: U.S. crypto lender Voyager Digital said on Wednesday that it has filed for bankruptcy, becoming the latest casualty of a crash in cryptocurrency prices that has shaken the sector.

The recent slump in crypto markets has devastated some lenders.

In June, New Jersey-based Celsius froze withdrawals and has since hired advisers on a possible bankruptcy filing. This month, Voyager froze withdrawals, as did another lender, Singapore's Vauld.

Last week, Voyager said it had issued a notice of default to crypto hedge fund Three Arrows Capital for failing to make payments on a crypto loan totaling over $650 million.

The hedge fund filed for bankruptcy later that week, becoming one of the highest-profile investors hit by plummeting crypto prices. Reuters reported last week that 3AC is now being liquidated.

In a statement, Voyager's CEO Stephen Ehrlich said: "The prolonged volatility and contagion in the crypto markets over the past few months, and the default of Three Arrows Capital on a loan from the company's subsidiary, Voyager Digital, LLC, require us to take deliberate and decisive action now."

In its Chapter 11 bankruptcy filing, Voyager estimated that it had somewhere between $1 billion and $10 billion in assets, and liabilities worth the same value.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting