Yahoo Finance 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.
