This article comes fromFT, Originally by Joshua Oliver
Odaily Translator | Nian Yin Si Tang
Odaily Translator | Nian Yin Si Tang
Voyager Digital filed for bankruptcy protection in the United States on Tuesday, becoming the latest victim of a crisis in the digital asset market sparked by a plunge in cryptocurrency prices.
The Toronto-listed brokerage and lender filed for Chapter 11 bankruptcy protection in New York federal court late Tuesday. It follows losses of more than $650 million on a loan the company provided to Three Arrows Capital. It is reported that Voyager Digital Holdings, Inc., Voyager Digital, LLC and Voyager Digital Ltd. all filed for bankruptcy protection.
Voyager suspended trading and prevented customers from withdrawing funds less than a week before the Voyager crash.
Known for bold bets on rising cryptocurrency prices, Singapore-based Three Arrows has borrowed heavily from big industry players to amplify its market bets, yet its assets have shrunk significantly as cryptocurrency prices have plummeted. Prices of major cryptocurrencies have fallen about 70% from their peak late last year.
Although Alameda Research, a trading firm controlled by FTX founder Sam Bankman-Fried (SBF), provided a bailout loan to Voyager last month, the firm went bankrupt. Bankruptcy documents show Voyager tapped its $75 million maximum limit within 30 days, making Alameda its largest unsecured creditor.
The company in the filingexpressexpress
, currently has $1.3 billion worth of encrypted assets on the platform, holds more than $350 million in cash in the Metropolitan Commercial Bank's (Metropolitan Commercial Bank) customer FBO account, and claims more than $650 million against Three Arrows Capital. According to the currently proposed plan, users with encrypted assets in their accounts on the platform will repay user assets through the repayment of Three Arrows Capital (a total of 650 million US dollars), the distribution of shares of the reorganized new company and Voyager tokens, and customers will It is possible to choose the ratio of common stock and cryptocurrency they receive. For users with cash in their accounts, the cash will be unlocked after Voyager completes the reconciliation and fraud prevention process with Metropolitan Commercial Bank.
Voyager said the plan is subject to change and subject to court approval, and Voyager will continue to evaluate all strategic alternatives to maximize value creation for stakeholders.
Metropolitan Commercial Bank said its holdings of Voyager customer funds are protected by U.S. federal deposit insurance, which covers depositors up to $250,000 per account ownership category. The account does not hold cryptocurrencies or any other assets. Voyager has said in the past that the FDIC would reimburse "dollar funds" if "the company ... fails."
Voyager said in the announcement that it has hired Moelis & Company and Consello Group as financial advisors, Kirkland & Ellis LLP as legal advisors and Berkeley Research Group, LLC as restructuring advisors.
In addition, Matthew Ray is an independent director of Voyager Digital Ltd. Scott Vogel serves as an independent director of Voyager Digital Holdings, Inc. Jill Frizzley and Timothy Pohl serve as independent directors of Voyager Digital LLC.
Voyager CEO Stephen Ehrlich said after filing for bankruptcy protection: "We have full confidence in the future of the industry, but the long-term volatility of the crypto market and the default of Three Arrows Capital require us to take this decisive action."
The Celsius team recentlyexpressexpress
Meanwhile, another competitor, BlockFi, also provided loans to Three Arrows. Recently, BlockFi CEO Zac PrinceAnnounceAnnounce
, the Company has entered into the following agreement with FTX US (subject to shareholder approval):
1. FTX US provides BlockFi with a $400 million revolving line of credit;
2. Offer FTX US the option to acquire BlockFi for a variable price of up to $240 million.
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