Crypto lending firm Voyager files for bankruptcy

Voyager Digital, one of the companies that has difficulty continuing its activities in the cryptocurrency markets under the current conditions, has filed for bankruptcy. In a statement made by the crypto credit company Voyager, it was announced that the bankruptcy application was made, while it was estimated that the company has more than 100 thousand creditors and the debt range in crypto assets is between 1 billion and 10 billion dollars. According to the Chapter 11 bankruptcy procedure, which is the type of bankruptcy applied for by Voyager, all legal receivables are suspended and the operational activities of the company that filed for bankruptcy continue while preparations are made for repayment plans during this time. Voyager Chief Executive Officer Stephen Ehrlich said in a statement that the long-standing volatility in the crypto markets and the default of Three Arrows Capital, which the company's subsidiary Voyager Digital had loaned, were effective in this decision. The situation in the cryptocurrency industry, where some companies fell into a liquidity crisis and came to the brink of bankruptcy, was triggered by the collapse of Terraform Labs in May. After TerraUSD (UST), the stable algorithmic crypto asset of the Terra ecosystem, lost its stability due to heavy sales, the ecosystem lost its functionality, causing a loss of approximately $ 45 billion in the market. Crypto companies that have invested directly or indirectly in the Terra ecosystem have also had difficulty in fixing their deteriorated financial structures since May. Three Arrows Capital had also filed for bankruptcy. In addition, the losses of companies facing a liquidity crisis have reached irreparable levels due to the funds quickly withdrawn from the cryptocurrency markets in 2022. Three Arrows Capital was another company that filed for bankruptcy yesterday to avoid liquidation procedures. Celsius, a crypto lending company experiencing difficult times, was first seen to shrink after receiving professional advice to overcome the crisis and then started to pay its debts yesterday. Concerns that corporate bankruptcies may continue if the downward volatility in the cryptocurrency markets continues remain valid.