Bankrupt crypto lender Voyager Digital has announced the sale of its entire stake in cryptocurrency platform Coinify for $2 million.
Voyager, which filed for chapter 11 in July, acquired Coinify in August last year for $15 million in cash, plus 5.1 million Voyager common shares.
The platform used by Coinify is separate and distinct from the Voyager platform.
Sale approved by US Bankruptcy Court
Coinify's sale has been approved by the US Bankruptcy Court for the Southern District of New York, which is overseeing Voyager's ongoing chapter 11 restructuring process.
The sale of Coinify reduces the overall headcount by 15% and eliminates Voyager's ongoing funding requirements for Coinify of up to $500,000 per month, according to a statement issued by the company.
Coinify generated $55.7 million in revenues
For the nine months ending March 31, the asset had brought in $55.7 million for the business, of which $20.6 million came from the third quarter alone.
Voyager had filed for Chapter 11 in New York in July
As per the petition filed by Voyager Digital Ltd., the Company has over $110 million in cash and owned crypto assets on hand, which will provide liquidity to support day-to-day operations during the Chapter 11 process, in addition to more than $350 million cash held in the For Benefit of Customers (FBO) account at Metropolitan Commercial Bank.
Voyager also has approximately $1.3 billion of crypto assets on its platform, plus claims against Three Arrows Capital of more than $650 million.
Voyager had previously announced that its subsidiary, Voyager Digital LLC, had issued a notice of default to 3AC for failure to make the required payments on its previously disclosed loan of 15,250 Bitcoin (BTC) and $350 million USDC.
Despite moving to delist from the TSX and instead list on the CSE, Voyager Digital is currently not trading as a result of the bankruptcy filings.
Disclosure: Benzinga CEO Jason Raznick Is a member of the unsecured creditor committee in the Voyager Digital bankruptcy case.
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