What is Voyager Digital?
Voyager Digital Ltd (OTC: VYGVF) is an electronic property broker agent that assisted in the trading of over 100 crypto properties and also supplied crypto repayment remedies to both consumers and also sellers. Recently the business stopped all withdrawals, trading, and also down payments on its system, pointing out the present market problems complying with actions taken by Celsius, Babbel Financing, and also Vauld.
The business applied for Phase 11 personal bankruptcy defense late on Tuesday. This was in spite of a rescue financing last month from a trading company regulated by FTX creator Sam Bankman-Fried. In the declaring, the business declares it has more than 100,000 lenders and also obligations in between $1 billion and also $10 billion. Its properties consist of $110 numerous cash money and also “possessed crypto properties” handy and also a more $1.3 billion in crypto properties on its system.
Why did Voyager Digital get in personal bankruptcy?
Voyager Digital is the current casualty of the collapse in crypto rates that has actually triggered an extreme situation in the electronic properties market. Considering that the start of the year, Bitcoin and also Etherium have actually experienced enormous rate decreases of 57.9% and also 69.8%, specifically. Sales of NFTs have actually likewise broken down from a height of $12.6 billion in January to simply over $1 billion in June. The personal bankruptcy declaring came one week after crypto bush fund 3 Arrows Resources broke down. This triggered a virus impacting Voyager Digital, to whom the bush fund owed $650 million.
What will take place next?
Voyager Digital intends to settle consumers with crypto properties, earnings from the 3 Arrowheads personal bankruptcy, business shares when it returns from bankruptcy, and also “Voyager symbols”. Nevertheless, this undergoes court authorization. It likewise holds $350 numerous consumers’ money in U.S. buck down payments at Metropolitan Commercial Financial Institution.