(MENAFN- Khaleej Times) It has claims of over $650 million against Singapore-based Three Arrows Capital Stephen Ehrlich. Photo: AFP By ANI
Published: Thu 7 Jul 2022, 9:49 AM
In another major setback to the crypto industry, the US-based crypto broker and lender Voyager Digital on Tuesday filed for bankruptcy.
The firm, through the bankruptcy procedure, intends to maximise value for all its stakeholders, it said in a statement. It aims to pay its employees in the usual manner and continue their primary benefits and certain customer programmes without disruption. Trading, deposits, withdrawals and loyalty rewards on the Voyager platform remain temporarily suspended.
Founded in 2018, it has approximately $1.3 billion of crypto assets on its platform, plus claims against Singapore-based Three Arrows Capital (‘3AC’) of more than $650 million.
Three Arrows Capital has defaulted on various loans and is in deep trouble.
‘This comprehensive reorganisation is the best way to protect assets on the platform and maximize value for all stakeholders, including customers,’ said Stephen Ehrlich, CEO of Voyager in the statement.
Ehrlich further said that Voyager Digital requires 3AC to take ‘deliberate and decisive action now’. He added that the bankruptcy process provides an efficient and equitable mechanism to maximise recovery.
The value of Bitcoin as a crypto asset has tumbled 55 per cent so far in 2022. The crypto market, at large, has fallen by about a third since it hit its peak sometime in November last year and left many investors poorer.
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