Voyager Digital CEO Stephen Ehrlich said the move was down to “the prolonged volatility in the crypto markets.”
(Picture: Getty Images)New York based cryptocurrency broker Voyager Digital has filed for bankruptcy in the latest in a string of collapses as bitcoin prices plummet.
It comes after the firm last week suspended customer trading, deposits and withdrawals on its platform amid an accelerating Bitcoin sell-off.
The firm said the latest move was part of a “financial restructuring process,” which, if successful, would allow customers to resume access to their accounts, while those who held crypto in their accounts would be offered shares in the company.
Voyager Digital has 3.5 million verified users on its platform with total assets of $5.8 billion, according to its most recent quarterly report.
It follows the liquidation of crypto hedge fund Three Arrows Capital after the company failed to repay creditors, including defaulting on a $675 million loan from Voyager.
Voyager Digital CEO Stephen Ehrlich said on Twitter: “We strongly believe in the future of the industry but the prolonged volatility in the crypto markets, and the default of Three Arrows Capital, require us to take this decisive action.”
The price of Bitcoin has plummeted 33% in the past month, sinking below £16,000, while the crypto crash has wiped £320 million off the value of crypto assets, according to CoinMarketCap.
It comes after a number of cryptocurrency exchange platforms suspended trading in a bid to contain swelling losses and keep afloat.
Last month, crypto lender Celsius Network announced it was suspending withdrawals and transfers between accounts because of “extreme market conditions,” while earlier this week, Singapore-based Vauld announced it was suspending withdrawals citing “financial challenges.” Crypto lender Nexo said it was in talks to acquire Vauld and was exploring restructuring the company “so that it is functioning again.”
