Voyager Digital Delists Shares, Unveils Restructuring Plan

Embattled crypto broker Voyager Digital has announced the delisting of its shares from the Toronto Stock Exchange (TSX).

On July 7, Voyager Digital announced that it had given notice to the Toronto Stock Exchange for voluntarily delisting its common shares. The move came a couple of days after the firm filed for Chapter 11 bankruptcy in New York.

Furthermore, it also follows a TSX notice that it would be conducting a review of eligibility for continued listing. Under the bankruptcy proceedings, Voyager may no longer be able to list its common stock on Canadian exchanges.

It added that Voyager plans to apply to the Canadian Securities Exchange (CSE) to transition the share trading from the TSX to the CSE. Nevertheless, the financial regulator may not support this transition, the notice added.

Voyager Restructuring Plan

On July 6, Voyager CEO Stephen Ehrlich posted an update on Twitter. In it, he stated that the firm had begun a “voluntary financial restructuring process.” This was to protect assets on the platform and maximize value for all stakeholders.

The announcement stated that Voyager had around $1.3 billion in crypto assets on the platform. Additionally, there was over $350 million in cash held in an account for clients at Metropolitan Commercial Bank.

The bankruptcy filing seeks protection for Voyager Digital Holdings, Voyager Digital LLC, and Voyager Digital, Ltd. Chapter 11 permits a company to remain operational while it restructures.

Part of that plan included resuming account access and returning value to customers. Voyager suspended trading, deposits, and withdrawals on July 1.

It added that customers with crypto in their account would receive in exchange a combination of the following:

  • Crypto assets in their accounts
  • Proceeds from the 3AC recovery
  • Common shares in the new company
  • Voyager tokens

Those holding USD in their accounts will get access to their funds. This will be after a fraud prevention process is completed with the bank.

3AC Loan Default

Voyager issued a notice of default to Three Arrows Capital (3AC) for failure to make loan repayments last month. The crypto lending firm borrowed 15,250 BTC and $350 million USDC from Voyager. 3AC filed for Chapter 15 bankruptcy in New York on July 1.

Erhlich said that trading, deposits, and withdrawals will remain temporarily suspended. However, he added that the firm will remain in operation “pursuing all available remedies for recovery from 3AC.”

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