Crypto Firm Voyager Digital Files Bankruptcy: What You Need To Know
Since the collapse of the LUNA token and the death spiral of Terra’s UST stablecoin in early May this year, crypto winter has officially arrived, and Voyager Digital has now been added to the bankrupt list. Crypto prices have been crashing non-stop in the weeks since, taking many projects, exchanges, investors, and even hedge funds down with them. Hundreds of billions of dollars in market capitalization has been lost, and BTC recently dropped below its 2017 all time high of $20,000 in a historical first for the leading cryptocurrency. The dreaded bear market is here, flushing out the leverage that fueled the bull market, and exposing all companies that engaged in reckless strategies on their way to (and at) the top.
In June, Celsius Network was rumored to be insolvent as it froze customer accounts, further compounding the disaster of Terra's implosion. This had heavy consequences across the industry, as many companies and individuals had large positions in Celsius, and were still reeling from the damages of Terra's destruction. To date, Celsius customers still cannot cash out their crypto. These collapses affected Three Arrows Capital (3AC), the largest hedge fund in the blockchain industry, which suffered a chain reaction of heavy losses resulting in several liquidations, the impact of which spread to Voyager Digital and rendered the company insolvent.
Related: A Teenager Stole Over $36 Million In Crypto Using A SIM-Swap Trick
According to Decrypt, on June 22 Voyager revealed a massive $661 million loan taken out by 3AC, who was days away from defaulting if they missed payment. 3AC defaulted, rendering Voyager Digital insolvent, which prompted the temporary freezing of all deposits, withdrawals, and trading on the
Read more on screenrant.com
