Crypto Broker Voyager Digital Declares Chapter 11 Bankruptcy, Disables User Trading

The company wanted to go where few other companies have gone before in order to make it more mainstream. Instead of going to the moon and beyond, the platform is going straight into the dirt.

The New Jersey-based company announced early Wednesday that it had filed for Chapter 11 in New York. Chapter 11 gives companies the ability to reorganize or get their s**t in order while avoiding the demands of their creditors.

The company had between $1 and $10 billion in assets and debts, according to documents filed with the New York southern district bankruptcy court. The biggest creditor of the company was Alameda Research Venture, which has a claim of $75 million.

Since the start of the winter, things have not been going well for the company. Before suspending all trading activity on its platform on July 1st, the company had previously restricted withdrawals on its platform, limiting users to just $10,000 in a single day. Company executives claim that Three Arrows Capital owes them a lot of money. Three Arrows was ordered to liquidate its assets after it was ordered to repay millions of dollars in debt. Three Arrows owes it a large amount of digital currency, according to the company.

The best way to protect assets on the platform is to declare bankruptcy, according to Ehrlich.

The company had previously halted withdrawals and Ehrlich said in their proposed reorganization plan that customers that still have crypto in their accounts would see a return on their assets.

The company didn't say when any of that would happen, but it's all subject to change if Three Arrows liquidates. Three Arrows filed for protection for its U.S. assets this week.

Once things are sorted out with the bank, customers withUSD coin in their accounts will regain access. Users can't access the assets stored in their accounts because the company doesn't say when that will happen.

Due to the ongoing bear market, a number of trading companies have restricted withdrawals. Users of Vauld and CoinLoan were not allowed to take their own stake of the dragon's treasure. In the past, trading platforms had restrictions on withdrawals as well.