Concepts, Computers and Coffee: Fwd: Voyager Files For Bankruptcy

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CHAPTER 11

Crypto broker Voyager Digital Ltd. filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court of the Southern District of New York on Tuesday. The filings list Voyager's assets as well as estimated liabilities in the $1 billion-$10 billion range. In a statement, the company said it has roughly $1.3 billion in cryptocurrencies on its platform and more than $350 million in cash on behalf of customers at New York's Metropolitan Commercial Bank. Voyager has also stated that "it is actively pursuing all available remedies for recovery from Three Arrows Capital (3AC)." Last week, the beleaguered Singapore-based hedge fund defaulted on a $675 million loan from Voyager and was ordered to liquidate in the British Virgin Islands.

SOLANA, MULTICOIN ACCUSED OF VIOLATING SECURITIES LAW

A Solana investor has filed a class-action suit against Solana Labs and its CEO Anatoly Yakovlenko, the Solana Foundation, crypto investment firm Multicoin Capital and its cofounder Kyle Samani as well as trading platform FalconX. The lawsuit accuses them of illegally profiting from the sale of SOL, the blockchain's native token, to the detriment of retail traders and in violation of the securities law. The case alleges that the way SOL was created and sold meets the three conditions of the Howey Test, a framework used to determine if a transaction qualifies as an "investment contract," and therefore would be considered a security. SOL is down 76% so far this year.

Source: Forbes Digital Assets, powered by Nomics. Prices as of 4:30 p.m. on July 7, 2022.

The True Value Of Cryptocurrencies

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CELSIUS GETS LIQUIDITY BOOST

Embattled crypto lender Celsius Network reclaimed $440 million of collateral on Thursday after paying off a loan on decentralized finance platform Maker. Blockchain data shows that a wallet associated with Celsius repaid the last portion of its $224 million loan on July 7, which prompted Maker to release about $448 million worth of crypto pledged as collateral. The loans on decentralized lending platforms such as Maker usually require the borrower to put up more assets in collateral than the value of the loan itself.

CoinDesk reported earlier this week that the freed up capital "can be sold on centralized exchanges or via over-the-counter to meet creditor demands and customer withdrawals." Celsius paused all customer withdrawals and transactions on June 12 to avoid a run on deposits.

BLOCKCHAIN 50 SPOTLIGHT

Meta: Facebook's decision to rebrand as Meta and go all in on the (mostly) theoretical "metaverse" could be a boon to blockchain as well as Facebook, with its 2.9-billion-member global community. After all, an immersive, all-encompassing virtual world is a natural environment for cryptocurrencies, custom avatars, NFTs, blockchain gaming, digital wallets and more. Let's hope Facebook has more success with the metaverse than it did with Libra, its much-hyped cryptocurrency that was announced in 2019, renamed "Diem" in 2020 and sold to California bank Silvergate Capital in January 2022 for $182 million. To date little is known about the technology underlying Facebook's metaverse.

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