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On Tuesday, September 5th, 2022, Voyager Digital filed a notice with the US Bankruptcy Court of New York. The notice from the bankrupt crypto lender came in the wake of informing the court of the company’s objective to organize an auction of overall remaining digital assets.
Within its filing, Voyager proposed to hold the auction on September 13th, 2022. The venue for this event was said to be the Manhattan office of Moelis & Company, an investment banker of Voyager Digital. It also mentioned the result to be announced by September 29th.
Earlier the same auction event was decided to take place on August 29th, 2022. Many entities were interested in participating in the auction to acquire the assets belonging to the crypto lender.
On July 1st, 2022, Voyager Digital freezed its operations related to trading, withdrawals, deposits and loyalty rewards. Additionally the firm went on to make an announcement of filing a Chapter 11 bankruptcy. The bankruptcy filing came in the wake of efforts towards reorganizing the firm under the debt of over 1 billion USD.
According to Voyager Digital, the users of crypto lending platform would have changed to receive various cryptocurrencies, along with the proceedings generated after the recovery from Three Arrows Capital (3AC), some common shares in the company as well as Voyager tokens.
On July 22nd, 2022, Bahamian crypto exchange FTX proposed to buy beleaguered crypto exchange along with its crypto loans excepting the one belonging to Three Arrows Capital. However, Voyager Digital rejected the offer within days calling it was below the expectation.
The reason behind the bankruptcy of Voyager Digital came as a quite tough situation where the company had to issue default notice against the loans. Primarily, 3AC had a huge chunk within the default loan amount including 15,520 bitcoin (BTC) and USD Coin (USDC) worth 350 million USD.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
