Voyager Crypto’s Bankruptcy Filing Highlights Risks of Crypto Investing

 Crypto Lender Cites Exposure to Three Arrows Capital

Voyager Digital, a crypto lender, filed for Chapter 11 bankruptcy on Tuesday, becoming the latest high-profile crypto company to fall victim to the market downturn.

The company said in a filing that it had $1.3 billion in assets and $650 million in liabilities. It also said that it had exposure to Three Arrows Capital, a major crypto hedge fund that filed for bankruptcy last week.

 Voyager Customers to Face Losses

Voyager customers will likely face losses as a result of the bankruptcy filing. The company said that it is “unable to fulfill customer redemption requests” and that it is “working with its financial and legal advisors to explore all available options.”

The bankruptcy filing is a major blow to the crypto industry, which has been struggling in recent months. The price of Bitcoin, the world’s largest cryptocurrency, has fallen by more than 70% from its all-time high in November 2021.

Industry Analysts Say More Crypto Companies Could File for Bankruptcy

Industry analysts say that more crypto companies could file for bankruptcy in the coming months. The market downturn has exposed the risks of the crypto industry, which is still in its early stages.

“The crypto industry is still very young and volatile,” said David Gerard, a crypto critic and author of “Attack of the 50 Foot Blockchain.” “There are a lot of companies that are overleveraged and don’t have enough assets to cover their liabilities.”

The bankruptcy filing by Voyager is a sign of the growing pains that the crypto industry is facing. It remains to be seen how the industry will weather the current market downturn and whether more companies will follow suit.