Cryptocurrency broker Voyager Digital Ltd. said Wednesday that it has filed for bankruptcy, days after it suspended withdrawals and trading on its platform amid growing turmoil in digital-currency markets.
The company said in a statement that it has initiated Chapter 11 restructuring in New York, where it is based, and will seek recognition of the case in Canada, where it is listed.
The bankruptcy filing comes after Voyager was caught up in the problems of one of its investors, Three Arrows Capital Ltd., a hedge fund that was ordered to liquidate after cryptocurrencies it was heavily invested in crashed.
Voyager said that it is “actively pursuing all available remedies for recovery” from Three Arrows, including through court-supervised processes in the British Virgin Islands and New York.
Voyager last week announced the temporary suspension of trading, deposits, withdrawals and loyalty rewards on the Voyager platform, saying it needed time to explore strategic alternatives.
On Wednesday it said the suspension remains in place, and that it aims to resume account access once the restructuring is executed.
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