Voyager Seeks to Liquidate Crypto and Sweep Cash from Third-party Exchanges

Voyager Digital, who filed for bankruptcy in the Southern District of New York earlier this month, has further filed a motion in the Court seeking to to liquidate cryptocurrency and sweep cash from third-party exchanges into the Debtors' operating accounts.

According to the company, to do this is a protection and preservation of estate assets for the benefit of all clients as cryptocurrency in the customer accounts that hold a negative US dollar balance may fall in value given the current market volatility.  

The practice of liquidating cryptocurrency from negative customer accounts promotes the healthy operation of the Debtors' platform and will inject further liquidity into the Debtors' business, thereby promoting the Debtors' ability to fund these chapter 11 cases, Voyager argued.

Shortly after suspending all trading, deposits, withdrawals and loyalty rewards on July 2, 2022, citing extreme market conditions, Voyager filed for bankruptcy on July 5, and then announced the voluntary delisting of its common shares from the Toronto Stock Exchange (TSX) on July 8.

These changes came just two months after the crypto lender raised $60 million in a private placement. Furthermore, Voyager has reported a strong Q3 FY22​ with a significant jump of 70% in its revenue for the quarter.