City Arrow Financial News

Crypto lending platform Voyager Digital has filed for Chapter 11 bankruptcy in New York, proposing a reorganisation plan days after it suspended trading, deposits and withdrawals.

Crypto lender Voyager Digital files for bankruptcy

Voyager Digital has filed for bankruptcy, the crypto lender said in a statement on Wednesday, a week after suspending withdrawals, trading and deposits to its platform as it sought additional time to explore strategic alternatives. In its Chapter 11 bankruptcy filing on Tuesday, Toronto-listed Voyager estimated that it had more than 100,000 creditors and somewhere between $1 billion and $10 billion in crypto assets. The company also recorded the same range for its liabilities. Chapter 11 bankruptcy procedures put a hold on all civil litigation matters and allow companies to prepare turnaround plans while remaining operational.

Days after pausing trading, withdrawals and deposits, crypto exchange Voyager Digital is filing for bankruptcy under Chapter 11 in the Southern District Court of New York.

Nexo is likely to acquire Singapore-headquartered crypto exchange firm Vauld, pending due diligence, as both the parties signed an indicative term sheet today. “The completion of this transaction is pending due diligence — which both teams are working on as we speak. Vauld has strived to deliver long-term value to all customers, and we believe coming under the Nexo umbrella will significantly help achieve this,” co-founder and CEODarshan Bathija wrote on microblogging platform Twitter on Tuesday.

Against a backdrop of declining cryptocurrency prices and increasing customer withdrawals, the Singapore-based crypto firm Vauld joined an increasing list of crypto-based entities halting withdrawals and even trading, with the company admitting, on July 4, to be facing financial challenges brought upon by the existing volatile market conditions. This follows news of crypto firms such as Celsius, Voyager, Terraform Labs, and the hedge fund Three Arrows Capital (3AC) having either suspended all trading activity or even declared bankruptcy, as is...

Voyager Digital Holdings, the US-based operator of a crypto platform Voyager Digital, and two affiliated debtors filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code, per Stretto, a bankruptcy specialist, data.

Embattled crypto investment firm Three Arrows Capital (3AC), which has recently filed for bankruptcy, ostensibly holds more than USD 7.5m worth of blue-chip NFTs.

Beleaguered cryptocurrency lender Vauld has been thrown a lifeline from larger competitor Nexo, in a sign of mounting consolidation in the crypto market.

The crypto winter just got even chillier, after Three Arrows Capital became the most significant casualty of the downturn, going into liquidation following weeks of uncertainty.

Vauld has suspended all deposits and withdrawals. The decision comes amid a broader volatility in the cryptocurrency market and as the platform faces financial challenges. Vauld is looking at a potential restructuring. “This is due to a combination of circumstances such as the volatile market conditions, the financial difficulties of our key business partners inevitably affecting us, and the current market climate,” said chief executive officer (CEO) Darshan Bathija in a statement on the company’s website on Monday. “All this has led to a significant amount of customer withdrawals over $197.7 million since June 12, when the decline of the cryptocurrency market was triggered by the collapse of Terraform Lab’s UST stablecoin, Celsius network pausing withdrawals, and Three Arrows Capital defaulting on their loans.”

Crypto-backed loans provider CoinLoan has temporarily reduced the withdrawal limit for traders. The company explained that the move was made due to the current market turmoil.

Bitcoin and Ethereum were up marginally. Polkadot was among the top losers. The global cryptocurrency market cap was trading at $865.22 billion mark, dropping more than half a per cent in the last 24 hours. However, total cryptocurrency trading volume jumped almost a per cent to $40.62 billion.

Crypto turmoil continues to deepen in the bear market, with more Celsius-related developments, another crypto loans firm introducing restrictions, and more activity from Three Arrows Capital (3AC) – which appears to have moved some of its funds.

Crypto hedge fund Three Arrows Capital has filed for Chapter 15 bankruptcy, a move that protects its US assets while a liquidation is carried out in the British Virgin Islands. Representatives for Three Arrows filed the bankruptcy petition in New York on Friday, court papers show. Chapter 15 bankruptcy filings stop creditors from seizing a company’s assets in the US. A British Virgin Islands court ordered the liquidation of Three Arrows Capital earlier this week. The fund, founded by former Credit Suisse traders Zhu Su and Kyle Davies, managed an estimated $10 billion of assets as recently as March, according to blockchain analytics firm Nansen.

The Monetary Authority of Singapore, or MAS, has been “carefully considering” adding restrictions that could affect how retail investors handle crypto, according to one of the government’s senior ministers.

In light of the crypto-market’s recent fortunes, popular lending platform Vauld has halted trading, deposits, and withdrawals. The company’s management disclosed that it is “suffering financial issues” ina blog post on its website. Released a few hours ago, a statement from Vauld CEO Darshan Bathija claimed, 

"If any part of their business model incorporates centralization <...> then it is centralized no matter what other decentralized features it deploys."

Disclaimer: The text below is a press release that was not written by Cryptonews.com.

The embattled cryptocurrency hedge fund, Three Arrows Capital (3AC) has filed for Chapter 15 bankruptcy in the United States of America as it looks to preserve its assets in the country.

The exchange said it is "facing financial challenges" amid the crypto market meltdown.