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| Type | Private |
|---|---|
| Industry | Hedge fund |
| Founded | 2018 |
| Defunct | July 5, 2022 |
| Fate | Liquidation |
| Headquarters | New York |
| Website | www |
Voyager Digital was a cryptocurrency brokerage company.[ when? ]
In June 2022, Voyager Digital announced that Three Arrows Capital had not repaid loans totaling $666 Million. [1]
On July 1, the company suspended “trading, deposits, withdrawals and loyalty rewards” [2] and subsequently on July 5, the company filed for Chapter 11 bankruptcy protection. [3]
Later in July, the Federal Reserve and the FDIC in a joint letter ordered the company to cease and desist from making false and misleading statements. [4]
In August, the company received approval from a judge to return $270 million in customer cash, which was locked up after the company’s bankruptcy filing in July. The money accounted for only a small portion of total investor funds. [5]
In September, Binance and FTX both made nearly $50 million bids for the company. [6] FTX would win the auction with a nearly $50 million bid. [7] [8] In November, FTX filed for bankruptcy and Voyager Digital had to find a new buyer. [9] A major investor in Voyager said that the collapse of FTX puts into jeopardy the company's bailout, with $1.3 billion of investor assets threatened. [10] Following the bankruptcy of FTX, the US subsidiary of Binance won the bid to buy the assets of Voyager for approximately $1 billion in December 2022. [11] The U.S. Securities and Exchange Commission (SEC) has filed a limited objection to Binance US's proposed $1 billion acquisition of bankrupt cryptocurrency lender Voyager Digital, a bankruptcy court filing showed in January 2023.[ citation needed ]
A cryptocurrency exchange, or a digital currency exchange (DCE), is a business that allows customers to trade cryptocurrencies or digital currencies for other assets, such as conventional fiat money or other digital currencies. Exchanges may accept credit card payments, wire transfers or other forms of payment in exchange for digital currencies or cryptocurrencies. A cryptocurrency exchange can be a market maker that typically takes the bid–ask spreads as a transaction commission for its service or, as a matching platform, simply charges fees.
Blockchain.com is a cryptocurrency financial services company. The company began as the first Bitcoin blockchain explorer in 2011 and later created a cryptocurrency wallet that accounted for 28% of bitcoin transactions between 2012 and 2020. It also operates a cryptocurrency exchange and provides institutional markets lending business and data, charts, and analytics.
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Digital Currency Group (DCG) is a venture capital company focusing on the digital currency market. It is located in Stamford, Connecticut. The company has five subsidiaries: CoinDesk, Foundry, Genesis, Grayscale Investments, and Luno.
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A cryptocurrency bubble is a phenomenon where the market increasingly considers the going price of cryptocurrency assets to be inflated against their hypothetical value. The history of cryptocurrency has been marked by several speculative bubbles.
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Alex Mashinsky is a Ukrainian-born Israeli-American entrepreneur and business executive. He is a cofounder and former CEO of Celsius Network, a bankrupt cryptocurrency lending platform.
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Celsius Network LLC is a bankrupt cryptocurrency lending company. Headquartered in Hoboken, New Jersey, Celsius maintained offices in four countries and operated globally. Users could deposit a range of cryptocurrency digital assets, including Bitcoin and Ethereum, into a Celsius wallet to earn a percentage yield, and could take out loans by pledging their cryptocurrencies as security. As of May 2022, the company had lent out $8 billion to clients and had almost $12 billion in assets under management.
Alameda Research was a cryptocurrency trading firm, co-founded in September 2017 by Sam Bankman-Fried and Tara Mac Aulay.
Three Arrows Capital was a Singapore-based cryptocurrency hedge fund which was ordered to liquidate on 27 June 2022 by a court in the British Virgin Islands. It was founded in 2012 by Kyle Davies and Su Zhu. The company borrowed billions of dollars to fund its trading, and according to July 2022 bankruptcy filings, faces $3.5 billion in creditors' claims. The fund appears to have lost in excess of $3 billion over 2021 and 2022, making its collapse one of the largest hedge-fund trading losses of all time.
BlockFi is a digital asset lender founded by Zac Prince and Flori Marquez in 2017. It is based in Jersey City, New Jersey. It was once valued at $3 billion.
Caroline Ellison is an American former business executive and quantitative trader who pleaded guilty to fraud, money laundering and conspiracy charges. She is the former CEO of Alameda Research founded by Sam Bankman-Fried, the trading firm affiliated with the cryptocurrency exchange FTX.
FTX Trading Ltd., commonly known as FTX, is a bankrupt company that formerly operated a fraudulent cryptocurrency exchange and crypto hedge fund. The liquidation of FTX, a Bahamas-based cryptocurrency exchange, began in November 2022. Public concern began with rumors of unethical and fraudulent inter-company transfers of client funds.
John J. Ray III is an American attorney and CEO who specializes in recovering funds from failed corporations. He was appointed CEO of cryptocurrency exchange FTX in the aftermath of its November 2022 collapse. He previously served as chairman of Enron Creditors Recovery Corp., a company tasked with recovering creditor funds from Enron in the wake of its accounting scandal and subsequent collapse.
Silvergate Bank was a small California bank founded in 1988. Silvergate became the first crypto-friendly bank in the U.S. by 2014, concentrating exclusively on serving this higher-risk industry.The bank’s single largest deposit customer, FTX, was a fraudulent crypto exchange and hedge fund. In November 2022, FTX, declared bankruptcy, withdrawing almost $1 billion in Silvergate deposits. Other depositors concerned about the banks financial health also pulled deposits. During the fourth quarter of 2022, Silvergate lost 68 percent, or $12 billion, in deposits.. Financially weakened by bank runs, on March 8, 2023, Silvergate announced plans to wind down and liquidate. Forbes contributor Jeff Gapusan described Silvergate as the canary in the banking coal mine. Its failure helped trigger the wider 2023 United States banking crisis with SVB failing on March 10 and Signature Bank on March 12..
Genesis is a digital assets focused financial services firm for institutional investors. It is a subsidiary of Digital Currency Group (DCG).
