In fact, the Toronto Stock Exchange initiated a delisting review of the cryptocurrency broker on July 6, and its shares have now been ‘suspended immediately.’ Regarding the review period, the exchange stated:
“TSX is reviewing the Shares of the Company with respect to meeting the requirements for continued listing pursuant to the Expedited Review Process.”
Notably, earlier on July 6, Voyager Digital filed for bankruptcy protection for nearly $1 billion in unsecured loans to Three Arrows Capital (3AC).
Voyager files for bankruptcy after 3AC defaults
The extended volatility and spillover in the cryptocurrency markets over the last couple of months, as well as the default of Three Arrows Capital (3AC) on a loan from its subsidiary, have forced Voyager Digital to file for bankruptcy.
This bankruptcy filing came one week after the cryptocurrency brokerage temporarily suspended withdrawals, trading, and deposits on its platform. At the time, the company stated it needed more time to look into other protective factors for the situation.
In the filing, the assets are listed as being between $1 and $10 billion, and the liabilities are shown as being in the same range. The company claims to have crypto assets worth $1.3 billion on its platform, in addition to claims against Three Arrows Capital that are worth more than $650 million.
Crypto ‘house of cards’
Three Arrows Capital, one of the most well-known cryptocurrency hedge funds, failed to make payment on a loan worth $670 million back in June.
The fund admitted in the statement that it was unable to repay a loan of $350 million in the stablecoin that was pegged to the US dollar and 15,250 Bitcoin, which would have been worth around $323 million based on the values at the time.