Voyager Digital files for Chapter 11 bankruptcy and proposes recovery plan

Voyager Digital has joined the growing list of CeFi companies hurting due to exposure to Three Arrows Capital and falling commodity prices. crypto assets.

Days after suspending trading, withdrawals, and deposits, crypto exchange Voyager Digital files for Chapter 11 bankruptcy with the court for the Southern District of New York.

Voyager's Chapter 11 bankruptcy filing indicates it must pay between $1 billion and $10 billion in assets for more than 100,000 creditors.

The struggling crypto exchange wasted no time after the U.S. holidays to file for bankruptcy on Tuesday. In a Wednesday statement, Voyager said the move was part of a "reorganization plan." Once implemented, the plan would allow customers to regain access to their accounts, and Voyager would "return value to customers".

Voyager's CEO explained his proposed plan, which involves customers with crypto in their account receiving a combination of crypto, the proceeds of the recovery of Three Arrows Capital (3AC), common stock of the newly reorganized and Voyager tokens.

Customers with crypto in their account(s) will receive a combination of the crypto in their account(s) in exchange ), proceeds from the 3AC recovery, common stock of the newly reorganized company, and Voyager tokens.

He also added confirmation that customers with US dollars in their accounts will be able to access these funds after "a reconciliation and fraud prevention process with Metropolitan Commercial Bank".

In the same Twitter thread, Ehrlich said he believed Chapter 11 was the best path for his clients, considering all factors, and assured that the move would protect assets on the platform and that Voyager would continue to operate....