Key Takeaways
- Voyager Digital has commenced voluntary Chapter 11 chapter proceedings within the Southern District of New York.
- The corporate mentioned in a press launch that it was proposing a restructuring plan to make entire its collectors and clients.
- Voyager had important publicity to Three Arrows Capital, which has additionally begun chapter proceedings.
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Voyager Digital has filed for Chapter 11 chapter and has begun the method of restructuring the corporate to satisfy its obligations to collectors and clients. The corporate issued the information in a press launch late Tuesday night time.
Bon Voyage
Voyager Digital introduced in a press release late Tuesday night time that it had begun voluntary Chapter 11 proceedings within the U.S. Chapter Court docket for the Southern District of New York. In line with the press launch, Voyager’s transfer is meant to “maximize worth for all stakeholders.”
Stated Stephen Ehrlich, Chief Govt Officer:
“This complete reorganization is one of the simplest ways to guard belongings on the platform and maximize worth for all stakeholders, together with clients… Voyager’s platform was constructed to empower buyers by offering entry to crypto asset buying and selling with simplicity, velocity, liquidity, and transparency. Whereas I strongly consider on this future, the extended volatility and contagion within the crypto markets over the previous few months, and the default of Three Arrows Capital (“3AC”) on a mortgage from the Firm’s subsidiary, Voyager Digital, LLC, require us to take deliberate and decisive motion now. The chapter 11 course of supplies an environment friendly and equitable mechanism to maximise restoration.”
Voyager claims to have over $110 million in money and crypto belongings readily available to help operations through the Chapter 11 course of. It additionally holds greater than $350 million in money in its For Benefit of Customers (FBO) account at Metropolitan Commerical Financial institution, roughly $1.3 billion in crypto belongings on its platform, and over $650 million in claims in opposition to the now-defunct Three Arrows Capital (3AC). The corporate acknowledged that it’s “actively pursuing all accessible treatments” to get better its funds from 3AC, together with courtroom proceedings.
A Chapter 11 chapter supplies mechanisms for an organization to proceed working whereas however considerably restructuring its obligations. This restructuring is required to be in the most effective curiosity of the corporate’s collectors.
The proposed restructuring plan is meant to revive account entry to clients. Below the plan, clients with crypto of their accounts would obtain some mixture of their holdings in crypto, proceeds from the 3AC restoration, frequent inventory within the newly reorganized firm, and Voyager tokens.
Clients with USD of their accounts would obtain entry to these funds “after [a] reconciliation and fraud prevention course of is accomplished with Metropolitan Industrial Financial institution.”
Buying and selling, deposits, withdrawals, and rewards on the platform stay suspended.
Disclosure: On the time of writing, the creator of this piece owned BTC and several other different cryptocurrencies.
