Voyager Digital said it had filed for bankruptcy on Wednesday. This happened a week after the crypto lender suspended all withdrawals, trading and deposits to its platform while it sought additional time to explore strategic alternatives.

Voyager, based in New Jersey, filed its Chapter 11 bankruptcy on Tuesday estimating that it had more than 100,000 creditors with assets valued between $1 billion and $10 billion, and liabilities worth the same amount.

Chapter 11 bankruptcy procedures put all civil litigation matters on hold while allowing companies to prepare turnaround plans as they remain operational.

Voyager Chief Executive Officer Stephen Ehrlich said in a statement, “The prolonged volatility and contagion in the crypto markets over the past few months, and the default of Three Arrows Capital on a loan from the company’s subsidiary, Voyager Digital, LLC, require us to take deliberate and decisive action now”.

Ehrlich said in a separate message to all their customers on the company Twitter handle that the process would protect assets and “maximise value for all stakeholders, especially customers”.

According to a filing with the U.S. Bankruptcy Court Southern District of New York, it showed that Alameda Research was Voyager’s largest single creditor, with $75 million of unsecured loans.

Voyager described Alameda’s investment in October, as “a strategic alliance” with “a clear pioneer” in the crypto industry.

Alameda Co-CEO Caroline Ellison concurrently said the partnership offered were “endless mutually beneficial opportunities to grow both our businesses.”

Voyager said it had issued a notice of default last week to Three Arrows Capital (3AC) in failure to make required payments on a loan of 15,250 bitcoin (approximately $324 million) and $350 million worth of USDC, a stablecoin.

3AC filed for chapter 15 bankruptcy later that week. This allows foreign debtors to shield U.S. assets.

On Wednesday, Voyager said it had more than $110 million of cash and owned crypto assets on hand. It plans to pay employees in the usual manner and proceeds their primary benefits and certain customer programs without disruption.

Moelis & Company and The Consello Group have been hired by Voyager as financial advisers, Kirkland & Ellis LLP as legal adviser and Berkeley Research Group LLC as restructuring adviser.

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