According to data from Stretto, a bankruptcy expert, Voyager Digital Holdings, the US-based owner of the cryptocurrency platform Voyager Digital, and two connected debtors voluntarily filed applications for relief under Chapter 11 of the United States Bankruptcy Code.
According to Bloomberg Law statistics, the estimated value of the assets and liabilities is between USD 1 billion and USD 10 billion.
Reorganization is typically allowed under Chapter 11, and it typically involves a corporation or partnership. A chapter 11 debtor typically offers a reorganization plan to continue operating its firm and pay creditors over time.
Voyager Digital announced last week that it is "temporarily" halting trading, deposits, withdrawals, and loyalty awards.
“This choice allows us more time to continue discussing strategic options with different interested parties while retaining the worth of the Voyager platform that we have jointly developed. When the time is right, we will disclose further details,” Stephen Ehrlich, CEO of Voyager, was reportedly cited as saying at the time.
Additionally as reported, the company has a multi-million dollar credit line agreement with Alameda Ventures, a quantitative trading firm and the parent company of the FTX exchange, and has exposure to the troubled cryptocurrency fund Three Arrows Capital totaling BTC 15,250 (USD 307 million) and USDC 350 million.