- Voyager Digital made the late-hour filing days after halting trading, deposits and withdrawals.
- The crypto lender confirmed that it holds $1.3 billion in cryptocurrencies and the estimated number of creditors exceeds 100,000.
- Jim Cramer argues crypto has “no real value”.
While experts believe the crypto market bottom may be finally in, another crypto lender Voyager Digital went bankrupt. The crypto lender has joined the long list of firms that collapsed in the bear market. The fall of the crypto lender is linked to Three Arrows Capital and Samuel Bankman Fried’s Alameda Research.
Also read: Vauld suspends withdrawals amid rising crypto uncertainty
Voyager Digital files for Chapter 11 bankruptcy
Digital asset brokerage Voyager Digital filed for bankruptcy on July 5. In Chapter 11, a plan is created to repay creditors all or part of what is owed, once the court approves the filing, the business begins repayment of its debts.
Based on information from the filing, Voyager Digital owes over 100,000 creditors. On July 1, Voyager halted withdrawals temporarily and on July 1, the lender confirmed the value of its assets. Voyager assured creditors that it is doing its best to resolve the issue. The lender confirmed that it holds $1.3 billion in cryptocurrencies and is “pursuing a series of strategic alternatives [to] best serve our customers for the long term.”
Voyager has three business entities, Voyager Digital Holdings, Voyager Digital LLC and Voyager Digital Ltd, seeking protection through the filing made in the Southern district of the New York bankruptcy court.
According to the filing, Voyager Digital Holdings owes Alameda Research Ltd., a firm own by FTX’s Samuel Bankman Fried, $50 million in unsecured loans. Interestingly, CNBC Mad Money host Jim Cramer recently criticized the crypto market for having “no real value.”
Official Chapter 11 bankruptcy filing of Voyager Digital
Cramer was quoted as saying,
Crypto really does seem to be imploding. Went from $3 trillion to $1 trillion. Why should it stop at $1 trillion? There's no real value there. How many companies can Sam Bankman Fried save?
Voyager has followed in the footsteps of Three Arrows Capital. On June 27, Voyager issued a notice of default to the hedge fund over a failed repayment of a $650 million loan. Soon after the notice, Three Arrows Capital filed for a Chapter 15 bankruptcy.
Experts argue the bear market is over
Experts are convinced the bottom is in, contradicting Jim Cramer’s comments. Jim Cramer has a track record for sharing his investment expertise as the host of CNBC’s show Mad Money. Experts like Coffeezilla, a crypto investigator and analyst have noted that Cramer’s investment tips and predictions are the opposite of the state of the crypto market.
Coffeezilla confirmed that the bear market just ended in response to Jim Cramer’s statement.
Crypto bear market just ended https://t.co/9a7tGjLYiW
— Coffeezilla (@coffeebreak_YT) July 5, 2022
FXStreet analysts evaluated the Bitcoin price trend and identified key levels to watch . Akash Girimath, leading crypto analyst, revealed how to trade Bitcoin profitably despite the market turmoil. For more information, watch this video:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Dogwifhat price pumps 5% ahead of possible Coinbase effect
Dogwifhat (WIF) price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu (BONK), WIF token’s show of strength was not just influenced by Bitcoin (BTC) price reclaiming above $63,000.
Runes likely to have massive support after BRC-20 and Ordinals frenzy
PUPS, WZRD, and PEPE are gaining liquidity through Bitcoin Ordinals. Creator of Bitcoin’s Ordinals protocol is debuting a new fungible token standard to rival BRC-20, Runes.
Ethereum shows firm support at key level as its correlation with US indices increase
Ethereum's price continued a sideways movement on Thursday as the market still awaits a trigger. Ethereum isn't alone in this horizontal trend; several major index funds have also traded sideways.
Mango Market attacker convicted of fraud and market manipulation
Mango Market attacker Avi Eisenberg was convicted by a federal jury on Thursday for "fraudulently obtaining" funds from the Solana-based decentralized exchange (DEX). He could face up to 20 years in prison for his role in the $110 million attack.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.