Crypto Lender Voyager Files for Bankruptcy Protection

The Terra LUNA domino effect continues.

The Story of Cryptocurrency broker and lender Voyager continues to escalate as the organisation has officially announced that they’re filing for Bankruptcy days after stopping customer off-platform withdrawals.

The decision comes as a result of 3AC — a prominent cryptocurrency VC defaulting on a $670 million loan. Originally founded in 2012, Three Arrows Capital was a Singapore-based cryptocurrency hedge fund that was ordered to liquidate on June 27 2022 by a British Virgin Islands court. Three Arrows Capital had investments in some of the biggest projects in the cryptoverse across different categories including: Solana, BlockFi, Axie Infinity and many others.

3AC also had a significant stake in Terra LUNA and Lido finance (the DeFi service responsible for the stETH depeg). 3AC was declared insolvent and was asked to liquidate, forcing them to default on the Voyager loan. You can read more about it here, in this Voyager and 3AC deep-dive.

This brings us back to Voygaer’s decision to file for bankruptcy and how they’re planning to make users “whole” again. Voyager’s Chapter 11 bankruptcy filing indicates that the company owns its 100,000 creditors anywhere between $1b to $10b U.S. dollars.