Cryptocurrency broker Voyage Digital filed for bankruptcy on Wednesday under Chapter 11.
VioJ had invested heavily in Singapore-based cryptocurrency hedge fund Three Arrows Capital (3AC) but last week 3AC filed bankruptcy under Chapter 15.
In such a situation, the crisis had deepened for voyage. Arrows Capital did not pay Voyage a loan of 15,250 bitcoins and $350 million in USDC, or stablecoin, in excess of $650 million.
Filing of bankruptcy under Chapter 11 will put the cases against voyage on hold but the company will remain in operation. He will be given time to plan the return.
viaje CEO Stefan Erlik said that due to the ongoing earthquake in the crypto market over the past few months, 3AC was unable to pay the debt, due to which the company decided to declare bankruptcy.
Voyage had earlier this week banned all deposits, withdrawals and loyalty rewards on its platform.
Its platform holds around $1.3 billion in crypto assets and over 350 million in cash for its customers. The company said it has more than $11 million in cash and crypto assets to support its operations.