Voyager Digital, a cryptocurrency brokerage service, stated today that it has voluntarily filed applications for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of New York. Only a few days before, the company had banned withdrawals as it looked for tactical options aimed at asset protection.

“This complete restructuring is the best approach to secure assets on the platform and maximize value for all stakeholders, including consumers,” stated Stephen Ehrlich, CEO of Voyager.

According to a court document, the company has over 100,000 creditors, assets between $1 billion and $10 billion, and obligations totaling the same amount.

In a news statement, Voyager said that it currently has more than $110 million in cash and controlled cryptocurrency assets that will allow the company to function normally during the Chapter 11 process.

The company also owns $1.3 billion in cryptocurrency assets on its platform, more than $350 million in cash in its For Benefit of Customers (FBO) account at Metropolitan Commercial Bank, and $650 million in claims against cryptocurrency hedge fund Three Arrows Capital (3AC). Voyager sent 3AC a default notice last week.

Voyager said it had used every legal means at its disposal, including court-ordered liquidations in the British Virgin Islands and New York, to recoup its loan from 3AC.

Voyager said it would be able to make its consumers whole if the bankruptcy court approves the restructuring plan.

Customers would get a mix of cryptocurrency in their accounts, money from the 3AC recovery, shares in the newly restructured business, and Voyager tokens, according to the proposal.

Furthermore, when a reconciliation and fraud prevention procedure with Metropolitan Commercial Bank is finished, users who have money in their accounts in US dollars will have their money back.

The broker said that trading and withdrawals are still blocked on its platform and that it would keep looking at all strategic options to maximize value for its clients and other stakeholders.

In the meanwhile, liquidity issues have been spreading across the industry since the current market collapse. The cryptocurrency loan firms Celsius Network and Babel Finance have put a halt to withdrawal capabilities on their websites.

Vauld, a Singapore-based marketplace for loans, has halted trading as well as deposits and withdrawals from its system.

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