Crypto Companies suffer
Crypto companies suffer … “Three Arrows Capital” files for bankruptcy, and “Voyager Digital” suspends withdrawals
Chapter 15 bankruptcy is a move that protects the company's assets in the United States while liquidations are in progress.
Corporate bankruptcy prevents creditors from seizing assets in the United States and applies to insolvency proceedings involving more than one country.
According to Bloomberg , three representatives of the Singapore-based crypto hedge fund firm filed for bankruptcy in New York on July 1.
The British Virgin Islands court ordered the liquidation of “Three Arrows Capital” on June 29, which we previously mentioned in Bitcoin Arabs.
According to the Bloomberg report
The liquidation will be an important moment in the current collapse of the cryptocurrency sector.
Bloomberg confirmed that the law firm Latham & Watkins represents Three Arrows Capital.
As a result of debts to Three Arrows Capital, crypto broker Voyager Digital is the latest in a long list of companies to halt trading and withdrawals.
On July 1 at 14:00 EST, the company suspended trading, deposits and withdrawals, according to the company's announcement.
Stephen Ehrlich, CEO of Voyager commented:
This was a very difficult decision, but we believe it is the right decision given the current market conditions.
The company will continue to explore strategic alternatives with various stakeholders.
Voyager is also actively pursuing all available remedies to recover from Three Arrows Capital, including the court-ordered liquidation process in the British Virgin Islands.
Earlier this month, Voyager Digital released a statement revealing it has invested nearly $500 million with Three Arrows Capital.
It then issues a default notice for failing to make required payments on its previously disclosed loan of 15,250 bitcoin and $350 million.
Last month, Voyager announced a loan agreement that includes $200 million in cash, USDC and a loan of 15,000 Bitcoin with Alameda to mitigate some of Three Arrows Capital's losses.