Crypto broker Voyager’s files for Bankruptcy as 3AC fails to pay back.
After 3AC’s incapability to pay back loans, some of the major companies in crypto sphere have gone down. Companies such as Block Fi, Celsius and Voyager have all been affected by Three Arrows. The most intriguing portion of a recent news story is that Crypto Broker Voyager also filed for chapter 11 bankruptcy in the Southern District of New York’s federal bankruptcy court.
In the description of filing, it is noted that, the assets of the crypto broker are ranging from $1 billion to $10 Billion. The catch to the news is that, the liabilities of the company is also between $1 Billion to $10 Billion. The Toronto-based firm estimates are more than 100,000 creditors.
Voyager CEO Stephen Ehrlich’s statements.
Credits: Business Insider
While I firmly believe in this future, the recent protracted volatility and contagion in the cryptocurrency markets as well as the failure of Three Arrows Capital force us to act with intention and resolve right away.
3AC’s started with the catastrophic fall of Terra USD in the market crash. The $60 Billion crash made sure that, many crypto institutions go down and fall in the market. Since, Three Arrows had $200 Million in Terra Luna, $40 Million in staked Ethereum, both suffered huge loses bringing the total worth of the company from $3 Billion to much lower.
Voyager’s reputed creditors.
As, 3AC failed to repay back Voyager, the crypto broker went on to get credit facilities from reputed institutions. Among the creditors, Alameda Research, the trading firm founded by CEO of FTX Sam Bankman-Fried, Galaxy Digital, Blockdaemon and Digital Currency group.
The two lines of credit offered by Alameda Ventures, which included $200 million in cash, USD Coin, and 15,000 Bitcoin, were set to mature at the end of 2024 and had a 5 percent annual interest rate.
Voyager’s current position.
As of June 24, Voyager claimed to have around $137 million in cash and crypto assets in its possession. The business revealed the following Monday that it had employed Moelis & Company, an investment bank, as financial advisors and had utilised $75 million of Alameda’s loan to facilitate customer orders and withdrawals. According to people with knowledge of the situation, Alameda Ventures does not anticipate recovering that money. “You know, we’re willing to accept a relatively awful deal here, if that’s what it takes to sort of stabilize things and safeguard customers,” Sam Bankman-Fried said in an exclusive interview with Forbes.
