Voyager sinks alongside Three Arrows Capital
The crypto exchange filed for bankruptcy amid solvency difficulties after 3AC failed to meet margin calls.
Canadian crypto exchange Voyager Digital has declared bankruptcy and filed for Chapter 11 petition in the U.S. Bankruptcy Court of the Southern District of New York, becoming the second high-profile crypto-firm to take this decisive action after world's largest crypto hedge fund Three Arrows Capital.
This latest development comes just a week after Voyager issued a notice of default exactly to the hedge fund Three Arrows Capital for “failure to make the required payments on its previously disclosed loan”. The firm revealed it had a $661 million exposure to 3AC and temporarily stopped trading, deposits, and withdrawals until the inability to repay this debt led Three Arrows Capital to file for bankruptcy.
Troubles began a few weeks ago when the cryptocurrency market recorded huge losses and begins affecting the activities of various cryptocurrency firms. Recent days have seen cryptocurrency businesses and lenders – such as CoinLoan, CoinFLEX, BlockFi, Celsius and others – encountering solvency concerns and declaring withdrawal limitations.