Tuesday, September 16, 2025

Voyager Digital Files For Chapter 11 Bankruptcy Protection Following 3AC Loan Default

If Voyager Digital (TSX: VOYG) shareholders didn’t think it was all over before following a string of unfortunate events, it certainly is now. The firm late last night filed voluntary petitions for Chapter 11 protection as it looks to implement a restructuring plan.

The filing was made in the US Bankruptcy Court of the Southern District of New York last night, while the company also indicated it intends to seek recognition of the filing in the Ontario Superior Court of Justice as well, under the Companies Creditors Arrangement Act.

The company has claimed that the filing creates an “efficient path to resume account access and return value to customers.”

“Voyager’s platform was built to empower investors by providing access to crypto asset trading with simplicity, speed, liquidity, and transparency. While I strongly believe in this future, the prolonged volatility and contagion in the crypto markets over the past few months, and the default of Three Arrows Capital (“3AC”) on a loan from the Company’s subsidiary, Voyager Digital, LLC, require us to take deliberate and decisive action now. The chapter 11 process provides an efficient and equitable mechanism to maximize recovery,” commented CEO Stephen Ehrlich.

In an early sign that customers are bound to lose money relative to their holdings currently held by Voyager, the company indicated that customers with crypto in their accounts currently are to receive a combination of items, including:

  • Crypto in their account.
  • Proceeds from what is recovered from Three Arrows Capital.
  • Common shares in the reorganized company.
  • Voyager tokens.

Customers will reportedly be able to select how much common equity or crypto they will receive, within certain ranges that were not disclosed. Finally, those with US dollars in their accounts will allegedly be able to access those funds after a “reconciliation and fraud process” is completed with Metropolitan Commercial Bank, Voyager’s banking partner.

In terms of its balance sheet, the company has reportedly seen its cash position decline to $110 million, which is believed to include funds accessed under a line of credit with Alameda Research, and is despite withdrawals being halted last Friday on the platform. Those funds are reportedly to be used to support day to day operations now under the Chapter 11 filing. The company indicated last week that they had accessed $75 million from the crypto fund (before Alameda returned 4.5 million shares at no cost), and filings indicate that Alameda is owed $75.0 million on an unsecured basis.

The company also currently has $350 million of cash that is held for customers, along with $1.3 billion in crypto assets held on the platform. Voyager also adds that they have claims against 3AC for over $650 million, but doesn’t provide details on actual expected recoveries from the crypto fund that is in the process of being liquidated.

Voyager also announced the appointment of four independent directors, three of which were assigned to subsidiaries. Matthew Ray, an experienced restructuring executive, was the sole director appointed to the parent company, Voyager Digital Ltd.

Little information was provided by the company in terms of what will happen to shareholders of the company, aside from the bland statement of, “The Company continues to evaluate all strategic alternatives to maximize value for stakeholders.”

Voyager Digital last traded at $0.335 on the TSX, and is expected to be halted in the near term.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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