Voyager Digital files for Chapter 11 bankruptcy, proposes recovery plan

cointelegraph.com:

Days after pausing trading, withdrawals and deposits, crypto exchange Voyager Digital is filing for bankruptcy under Chapter 11 in the Southern District Court of New York.

Voyager's Chapter 11 bankruptcy filing indicated that it is on the hook for anywhere from $1 billion to $10 billion in assets to more than 100,000 creditors.

The troubled crypto exchange wasted no time after the United States holiday to file for bankruptcy on July 5. In a Wednesday statement,  Voyager explained that the move is part of a “Plan of Reorganization.” When implemented, the plan would enable clients to reaccess their accounts again, and Voyager would “return value to customers.”

Voyager CEO Stephen Ehrlich stated in a July 6 tweet that he felt Chapter 11 was the best route for his clients, considering all factors. He assured that the move would protect assets on the platform and that Voyager will continue operating.

Voyagers, today we began a voluntary financial restructuring process to protect assets on the platform, maximize value for all stakeholders, especially customers, and emerge as a stronger company. Voyager will continue operating throughout.https://t.co/TxlO4eua8E

Under Voyager’s proposed plan, customers with crypto in their accounts will receive a combination of the crypto in their accounts, proceeds from the Three Arrows Capital (3AC) recovery, common shares in the newly reorganized company, and Voyager tokens.

“Customers with USD deposits in their account(s) will receive access to those funds after a reconciliation and fraud prevention process is completed with Metropolitan Commercial Bank,” it added.

Voyager said that part of the reorganization process will see the company filing “First Day” motions that will allow it to maintain