Crypto Contagion Continues as Lender Voyager Digital Files for Bankruptcy
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New Jersey-based Voyager Digital files for Chapter 11 bankruptcy. Company is estimated to have between $1 billion and $10 billion in assets and liabilities. High inflation and rising interest rates have caused crypto prices to dump, with bitcoin down 60% from its all-time-high in 2021. Voyager Digital's CEO, Stephen Ehrlich, said in the filing that the company's bad financial state was caused by two issues, including high inflation and interest rates. Third Arrows Capital, a crypto hedge fund, defaulted on a $650 million loan issued by Voyager in March, is in the process of court-ordered liquidation. Company's leaders hope the bankruptcy filing is the first part of a turnaround, with a plan outlined in court. Source