Crypto lender Voyager Digital files for bankruptcy, owes over $1.3 billion to 100,000 creditors
- 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
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
