Voyager Digital files for Bankruptcy:

Voyager Digital, a famously known crypto lender firm based out of New Jersey(USA), has filed for bankruptcy, days after it stopped all trading, deposits and withdrawals on its platform.

The Company cited that main reason behind this decision is the market volatility and down fall of 3AC(Three Arrow Capital), a Singapore based crypto hedge fund that once managed crypto assets worth Billions of dollar.

The company owed about $960,000 to Google and $75 million to Sam Bankman-Fried’s Alameda Research, it disclosed these details in the filing. They also mentioned that it had between $1 billion – $10 billion in assets.

Image Credit : Voyager Digital website

What made the Voyager to file for Bankruptcy?

Revenues of the Crypto based companies like BlockFi, Voyager sky rocketed during the pandemic time, attracting investors with their high interest rates on deposits and easy access to crypto backed loans.

Voyager said it had issued a notice of default to crypto hedge fund 3AC for their failure to make required payments on a loan. Three Arrow Capital later filed for bankruptcy (Chapter 15), which allows foreign debtors to shield U.S. assets. (Source : Reuters)

What next for the Crypto Space ?

Due to prolonged bear market and sell-off, the crypto space is having very tough time and it has impacted many crypto trading platforms.

Earlier, Celsius had suspended withdrawals and has planned to apply for bankruptcy. Just like Voyager, Vauld, a Singapore based crypto firm, also suspended withdrawals this month.

All these movements within the space will certainly affect the crypto prices further pushing it down and it doesn’t seem to end any sooner.

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