Voyager Digital files for bankruptcy

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Photo - Voyager Digital files for bankruptcy
It’s been a domino of bankruptcies on the market recently. Following the fall of crypto hedge fund Three Arrows Capital, the US crypto lender Voyager Digital files for chapter 11 bankruptcy protection.
The broker set the filing in motion on Tuesday, not long after Three Arrows Capital defaulted on a loan that was provided by Voyager Digital and also filed for bankruptcy. All withdrawals and trading operations were halted a week earlier. 
Voyager's platform was built to empower investors by providing access to crypto asset trading with simplicity, speed, liquidity, and transparency. While I strongly believe in this future, the prolonged volatility and contagion in the crypto markets over the past few months, and the default of Three Arrows Capital ("3AC") on a loan from the Company's subsidiary, Voyager Digital, LLC, require us to take deliberate and decisive action now. The chapter 11 process provides an efficient and equitable mechanism to maximize recovery.
said Stephen Ehrlich, the chief executive of Voyager.
Source: Voyager Digital Bankruptcy Filing Court Document

Source: Voyager Digital Bankruptcy Filing Court Document

The Chapter 11 filing grants businesses protection from creditors that allows them to further seek alternative strategies and remain operational. In its court document, Voyager Digital stated that it possesses crypto assets worth $1.3 billion on its platform.  
Voyager Digital is a US crypto platform that has been operating since 2018. It offered broking services and allowed clients to trade over 100 crypto assets, whilst also having the option to borrow digital assets in exchange for 12% yields and further lending them. 
But the interesting part doesn’t end there, as the filing shows that Alameda Research was Voyager’s biggest creditor at $75 million loans. Alameda Research belongs to Sam Bankman-Fried, the crypto billionaire and CEO of FTX. Bankman-Fried’s company, as stated in the document, is the second-largest Voyager Digital borrower with an outstanding amount of $377 million. In comparison, Three Arrows Capital owes the crypto broker company $654 million. 
In turn, Alameda Research has tweeted that it would be glad to return the loan in the future.