Voyager becomes the second large cryptocurrency company to submit a file for bankruptcy. On July 5, the firm applied for Chapter 11 which enables a company to continue to run its business and modify collateral obligations. Chapter 11 is the most complex form among the bankruptcy processes.
Related: Voyager Stops Trading, Withdrawals, Deposits, and Rewards
Voyager’s filing shows that the firm had over 100,000 creditors and from $1 to $10 bln in assets. The liabilities are of the same amount.
The document says funds will be available for allocation to unsecured creditors. Voyager ceased operations on July 1.
The current crypto winter has had a huge negative impact on the industry and especially on crypto lending companies. Earlier, cryptocurrency investment company 3AC applied for bankruptcy. In essence, the two cases are correlated. Voyager announced default notice to Three Arrows Capital as it failed to pay back a loan.
In mid-June, crypto lender Celsius halted withdrawals. Lately, leading bank Goldman Sachs revealed it intends to buy Celsius assets if the latter becomes bankrupt.