THELOGICALINDIAN - Voyager Digital appear backward Tuesday black that it had amorphous affairs in the US Bankruptcy Court for the Southern District of New York
Voyager Digital has filed for Chapter 11 defalcation and amorphous the action of restructuring the aggregation to accommodated its obligations to creditors and customers. The aggregation issued the account backward Tuesday night.
Bon Voyage
Voyager Digital has gone bust.
The afflicted crypto lender appear in a press release backward Tuesday night that it had amorphous autonomous Chapter 11 affairs in the U.S. Bankruptcy Court for the Southern District of New York. According to the columnist release, Voyager’s move is advised to “maximize amount for all stakeholders.”
Said Voyager Digital CEO Stephen Ehrlich:
“This absolute about-face is the best way to assure assets on the belvedere and aerate amount for all stakeholders, including customers… Voyager’s belvedere was congenital to empower investors by accouterment admission to crypto asset trading with simplicity, speed, liquidity, and transparency. While I acerb accept in this future, the abiding animation and bane in the crypto markets over the accomplished few months, and the absence of Three Arrows Capital (“3AC”) on a accommodation from the Company’s subsidiary, Voyager Digital, LLC, crave us to booty advised and absolute activity now. The Chapter 11 action provides an able and candid apparatus to aerate recovery.”
Voyager claims to accept over $110 actor in banknote and crypto assets on duke to abutment operations during the Chapter 11 process. It additionally holds added than $350 actor in banknote in its For Benefit of Customers (FBO) account at Metropolitan Commerical Bank, almost $1.3 billion in crypto assets on its platform, and over $650 actor in claims adjoin the burst crypto barrier armamentarium Three Arrows Capital (3AC). The aggregation declared that it is “actively advancing all accessible remedies” to balance its funds from 3AC, including cloister proceedings.
A Chapter 11 defalcation provides mechanisms for a aggregation to abide operating while about decidedly restructuring its obligations. This restructuring is appropriate to be in the best absorption of the company’s creditors.
The proposed restructuring plan is advised to restore annual admission to customers. Under the plan, barter with crypto in their accounts would accept some aggregate of their backing in crypto, gain from the 3AC recovery, accepted banal in the anew reorganized company, and Voyager tokens.
Customers captivation dollars in their accounts would accept admission to those funds “after [a] adaptation and artifice blockage action is completed with Metropolitan Commercial Bank,” the columnist absolution said.
Trading, deposits, withdrawals, and rewards on the belvedere abide suspended.
Disclosure: At the time of writing, the columnist of this allotment endemic BTC and several added cryptocurrencies.
