Voyager Digital said that it had filed for bankruptcy, a week after the crypto lender suspended withdrawals, trading and deposits to its platform as it sought additional time to explore strategic alternatives, Reuters reported. In its chapter 11 bankruptcy filing yesterday, New Jersey-based Voyager estimated that it had more than 100,000 creditors and somewhere between $1 billion and $10 billion in assets, and liabilities worth the same value. "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," Voyager Chief Executive Officer Stephen Ehrlich said in a statement. In a separate message to customers on the company Twitter handle, Ehrlich said the process would protect assets and "maximise value for all stakeholders, especially customers". A filing with the U.S. Bankruptcy Court Southern District of New York showed that Alameda Research was Voyager's largest single creditor, with unsecured loans of $75 million. Voyager announced Alameda's investment in October, describing the deal as "a strategic alliance" with "a clear pioneer" in the crypto industry. At the same time, Alameda Co-CEO Caroline Ellison said the partnership offered "endless mutually beneficial opportunities to grow both our businesses." Last week, Voyager said that it had issued a notice of default to Singapore-based crypto hedge fund Three Arrows Capital (3AC) for failing to make required payments on a loan of 15,250 bitcoin (approximately $324 million) and $350 million worth of USDC, a stablecoin. Later that week, 3AC filed for chapter 15 bankruptcy, which allows foreign debtors to shield U.S. assets.
