After halting withdrawals, trading, and deposits to its platform for a week to investigate strategic alternatives, Voyager Digital announced on Wednesday that it has filed for bankruptcy.
Voyager, a Toronto-listed company, stated in its Chapter 11 bankruptcy filing on Tuesday that it has more than 100,000 creditors and between $1 billion and $10 billion (approximately Rs. 7,930 crore and Rs. 79,305 crore) in cryptocurrency assets. The same range was also noted by the corporation for its obligations.
All civil legal cases are put on hold by Chapter 11 bankruptcy procedures, which also allow businesses to continue operating while turnaround plans are being developed.
The spectacular collapse of so-called stablecoin TerraUSD in May, which saw the stablecoin lose almost all of its value along with its linked token, can be blamed for many of the subsequent issues in the cryptocurrency market.According to Voyager Digital, company has over 100,000 creditors and between $1 billion and $10 billion (approximately Rs. 7,930 crore and Rs. 79,305 crore) in cryptocurrency assets.
The collapse of the stablecoin TerraUSD, an outlier because its peg to the dollar was intended to be maintained via a complicated algorithmically driven mechanism rather than by reserves of dollars or other assets, as is common for stablecoins, rocked the cryptocurrency market back in May.
