Stephen Ehrlich, the CEO of cryptocurrency lender Voyager Digital, announced today, July 6th, that the business has started a “voluntary monetary reorganization” procedure in order to safeguard investments, increase shareholders and client’s portfolios, and evolve victoriously.
Due to $660 million debt by The Three Arrows Capital, the company was pushed to file for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York.
Voyager Hopes For A Stronger Comeback
In a Twitter thread on June 6, cryptocurrency lender Voyager Digital stated that the persistent instability due to the bearish trend and the failure of Three Arrows Capital prompted the company to make this important decision. However, Voyage will still see its operations running.
Additionally, the cryptocurrency lender guarantees to restore customers’ money, after judicial clearance. Users that possess cryptocurrency would obtain a mixture of cryptocurrencies in return, along with the revenues from Three Arrows Capital’s insolvency. This will also include coins and shares of common stock of the recently established Voyager Digital.
Stephen Ehrlich stated that they will be attempting to obtain payments from Three Arrows Capital, particularly through the British Virgin Islands and New York bankruptcy procedures.
The firm added that it also had $350 million in US dollar assets from consumers in a New York Metropolitan Commercial Bank portfolio. That money is available to customers following “rectification and fraudulent risk management efforts.”
Certain commercial undertakings and programs will still be carried out by Voyager Digital. However, trading, deposits, withdrawals, and appreciation awards are still on hold. He is of the opinion that Voyager will get better and stronger from the bankruptcy proceedings.
Is Celsius The Next?
The statement indicates that Voyager’s anticipated holdings range from $1 billion to $10 billion, and its calculated debts are of the same amount. In addition, it has almost 100,000 creditors.
Sam Bankman-Fried, the creator of FTX, and his trading company Alameda Research are now the biggest distressed creditors according to the statement. Using a loan from Alameda of $75 million, Sam Bankman-Fried agreed to save Voyager Digital.
Forbes claims that Alameda Ventures doesn’t really anticipate receiving the money back. In a conversation with Forbes, Sam Bankman-Fried said, “You know, we’re prepared to do a pretty awful agreement here.”
The rumor that Celsius may declare bankruptcy soon, following Voyager, is increasing.