(MENAFN) Cryptocurrency broker Voyager Digital filed for bankruptcy Wednesday after chaos in the crypto market.
The New York-based firm stated that it began a voluntary Chapter 11 procedure whereas its highest operating subsidiaries filed voluntary petitions for reorganization in the US Bankruptcy Court in the Southern District of New York.
Chief executive Stephen Ehrlich said in a statement “This comprehensive reorganization is the best way to protect assets on the platform and maximize value for all stakeholders, including customers.”
He stated that “While I strongly believe in this future, 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 Digital stated that it has over USD110 million in cash and retained crypto assets on hand, as well as more than USD350 million in cash in a commercial bank.
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