Voyager Digital CEO Reveals Restructuring Plan, Who Will Be Impacted?

Source : coingape.com

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Crypto lender Voyager Digital’s CEO Stephen Ehrlich on Wednesday said the company has commenced a “voluntary financial restructuring” process to protect assets, maximize value for its shareholders and customers, and emerge strongly. The Three Arrows Capital’s $660 million default forced the firm to file for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York.

Voyager Digital CEO Stephen Ehrlich Plans Coming Back Strongly

Crypto lender Voyager Digital announced in a series of tweets on June 6 that the prolonged volatility as a result of the bear market and the default of Three Arrows Capital led the firm to take this decisive action. However, Voyager will still continue to operate.

Moreover, the crypto lender promises to return customers’ funds, subject to court approval. Customers will receive a mix of cryptos in exchange for their crypto holdings, funds from Three Arrows Capital’s liquidation. Along with, common shares of the newly organized Voyager Digital and its tokens.

Stephen Ehrlich declared that they are working to get funds from Three Arrows Capital, including through the court-supervised bankruptcy processes in the British Virgin Islands and New York.

Furthermore, the company said it also holds $350 million of customers’ deposits in US dollars in an account at Metropolitan Commercial Bank in New York. Customers can get access to these funds after “a reconciliation and fraud prevention process.”

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Voyager Digital will continue to operate some business operations and projects. But, trading, deposits, withdrawals, and loyalty rewards remain temporarily suspended.

He believes the bankruptcy filing will help Voyager emerge as a stronger company.

“This well-established legal process whereby companies reorganize their financial obligations to emerge as stronger organizations, provides an efficient & equitable mechanism to maximize recovery. Our goal is to come out a stronger organization.”

Impact of Voyager’s Bankruptcy on FTX and Sam Bankman-Fried

According to the filing, Voyager’s estimated assets are between $1 billion and $10 billion, with liabilities worth the same value. Also, it has more than 100,000 creditors.

The filing made Alameda Research, a trading firm owned by FTX founder Sam Bankman-Fried, as the largest unsecured creditor. Sam Bankman-Fried committed to bailout Voyager Digital with a $75 million credit from Alameda.

As per Forbes, Alameda Ventures does not expect repayment of the capital. “You know, we’re willing to do a somewhat bad deal here, if that’s what it takes to sort of stabilize things and protect customers,” Sam Bankman-Fried told Forbes in an interview.

After Voyager, the FUD on Celsius being next to file bankruptcy is rising.

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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