Crypto Brokerage Voyager Digital Files For Bankruptcy

The carnage in the cryptocurrency market continues as brokerage Voyager Digital (VOYG) has filed for Chapter 11 bankruptcy protection.

Voyager Digital, which is listed on the Toronto Stock Exchange, commenced bankruptcy proceedings with listed debts of between $1 billion U.S. and $10 billion U.S.

In a statement, the company said it has roughly $1.3 billion U.S. of cryptocurrencies on its platform and holds $350 million U.S. in cash.

Voyager Digital suffered huge losses from its exposure to cryptocurrency hedge fund Three Arrows Capital, which fell into liquidation last week after defaulting on $650 million in loan payments.

Last week, Voyager paused all withdrawals, deposits, and trades on its platform due to “current market conditions.” Several other firms, including Celsius, Babel Finance and Vauld, have taken similar steps in recent days.

The cryptocurrency market is struggling with a liquidity crisis as platforms fail to meet a flood of withdrawals from customers amid a sharp drop in prices for digital coins and tokens.

Bitcoin (BTC), the world’s biggest digital coin, had its worst month on record in June, plunging 38% and dropping below the key support level of $20,000 U.S.

Toronto-listed Voyageur Digital’s stock has fallen 98% this year to trade at $0.34 a share.