The latest casualty of chaos in digital asset markets is Voyager Digital, which has filed for Chapter 11 reorganization.
The company filed for Chapter 11 in the US Bankruptcy Court in New York. The assets and liabilities are listed in the same range.
The company stated in a statement that it holds over $350 million in cash on behalf of customers at New York's Metropolitan Commercial Bank.
Three Arrows Capital went bust last week after failing to make payments on loans from a number of firms in the industry.
"We strongly believe in the future of the industry, but the continued volatility in the markets and the default of Three Arrows Capital necessitate us to take this decisive action," Stephen Ehrlich said in a statement.
Since the beginning of the year, the firm's shares have lost 98% of their value.
There are court-supervised proceedings in the British Virgin Islands and New York to recover funds from 3AC.
The platform was paused last week due to current market conditions. Ehrlich said at the time that the company was looking for more time to explore strategic alternatives.
Several firms have taken similar steps. Vauld received a takeover offer from another firm after suspending its services.
The digital currency market is in a state of turmoil as platforms struggle to meet a flood of withdrawals from customers.
After the collapse of Terra, a so-called stable coin venture that was worth around $60 billion, the Federal Reserve began to tighten monetary policy, which led to a fall in risky assets.
The world's largest token had its worst month ever in June. The investors are bracing for a long downturn in the digital currency.
The restructuring process can be implemented if the move is made.
If the plan goes according to plan, users will receive a combination ofcryptocurrencies in their accounts, as well as proceeds from the recovery of funds from Three Arrows Capital.
Once the fraud prevention process with Metropolitan Commercial Bank is completed, clients with U.S. dollar deposits will regain access to their funds.
A $500 million line of credit was extended by the quant trading shop of Sam Bankman-Fried in a futile attempt to tide the company over.
The largest creditor in the Chapter 11 filing was Alameda with a claim of $75 million.
Bankman- Fried has become a lender of last resort for the troubled industry. He recently agreed a deal giving FTX the option to buy BlockFi for up to $240 million, which is a huge decrease from the $3 billion it was last privately valued at.
Bankman-Fried was compared to John Pierpont Morgan in his efforts to save Wall Street from collapse after a series of bank runs in 1907.
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