Last month, the company revealed it had a $661 million exposure to 3AC, a crypto hedge fund that failed to meet margin calls from several lenders and eventually filed for bankruptcy on July 2.
“We strongly believe in the future of the industry but the prolonged volatility in the crypto markets, and the default of Three Arrows Capital, require us to take this decisive action,” Digital Voyager CEO Stephen Ehrlich said on Twitter.
We strongly believe in the future of the industry but the prolonged volatility in the crypto markets, and the default of Three Arrows Capital, require us to take this decisive action.
Voyager temporarily paused trading, deposits, and withdrawals last Friday, and is now coming up with a “Plan of Reorganization” that would “resume account access and return value to customers,” according to Ehrlich.
“Customers with crypto in their account(s) will receive in exchange a combination of the crypto in their account(s), proceeds from the 3AC recovery, common shares in the newly reorganized Company, and Voyager tokens,” said Ehrlich.
The Voyager boss added that while the firm is “actively pursuing all available remedies for recovery from 3AC,” it is in a position to confirm “that customers with USD deposits in their account(s) will receive access to those funds after a reconciliation and fraud prevention process is completed with Metropolitan Commercial Bank.”
Download MAXBIT Android App, Your best source of all crypto news!