Voyager Bankruptcy

Voyager Digital Holdings, Inc. along with its two co-debtors (Voyager) operates a cryptocurrency brokerage platform and custodial services for the storage of cryptocurrency, as well as offering lending programs to customers.

On the date Voyager filed for chapter 11 relief, its mobile application had over 1.1 million active users. Voyager pinned its bankruptcy filing on the continuing effects of the COVID-19 pandemic, inflation, and the war in Ukraine on the world economy, as well as the onset of the crypto winter. In June 2022, Voyager found that its loan of 15,250 Bitcoin and 350 million USD Coin to Three Arrows Capital, worth approximately $670 million, was at risk of being unpaid, and Voyager issued a notice of default and acceleration to 3AC. Voyager filed for chapter 11 with a proposed plan of reorganization and sought a plan sponsor in exchange for partial or full ownership of the reorganized Voyager. Voyager previously held an auction and selected West Realm Shires Inc. (FTX US) as the winning bidder for substantially all of Voyager's cryptocurrency assets. However, after FTX US filed for chapter 11 in November 2022, the bid was terminated, and Voyager reopened the bidding process.