Voyager Digital was once one of the faster-growing names in crypto brokerage, but its decline was just as sharp. The company was founded in 2018 and filed for Chapter 11 bankruptcy protection in July 2022, after a combination of market losses, the Terra collapse, and a loan default tied to Three Arrows Capital (3AC).
A broker built around trading, yield, and VGX
Voyager Digital Ltd. is a publicly traded crypto brokerage platform founded by Stephen Ehrlich, Oscar Salazar, and Philip Eytan in 2018. The platform pitched a simple interface, competitive fees, and access to a broad set of digital assets, aiming at both new market entrants and more experienced traders.
Its offering went beyond spot trading. Voyager said users could earn interest by holding crypto in the app, and its native token, VGX, was tied to rewards, discounts, and other user benefits. The source also describes Voyager as providing lending services, borrowing digital assets from customers in exchange for yield and lending them onward.
Rapid milestones before the downturn
The company moved quickly through several milestones. In 2018, Voyager launched its trading platform. In 2019, it expanded into interest-bearing features and added more cryptocurrencies. In 2020, Voyager Digital Ltd. listed on the Canadian Securities Exchange and the OTCQB Venture Market in the United States. In 2021, it introduced the Voyager Loyalty Program for VGX holders.
That sequence helped establish Voyager as a recognizable retail crypto brand. The strategy was clear: combine easier market access with yield products and token-based incentives.
2022 brought market stress and a major credit hit
The break came in 2022. According to the source, the broader crypto market dropped from a $3 trillion peak in November 2021 to less than $1 trillion, and Terra’s collapse in May 2022 added more pressure. Voyager then suspended all withdrawals and trading in June, citing “volatility and contagion” in crypto markets.
The more direct blow came from 3AC. The hedge fund defaulted on a loan from Voyager’s subsidiary, Voyager Digital LLC, and was later set for liquidation. CEO Stephen Ehrlich said the company needed “deliberate and decisive action” as instability continued across the market.
In its Chapter 11 filing, the New Jersey-based company estimated that both its assets and liabilities were between $1 billion and $10 billion, with more than 100,000 creditors. That range is broad, but it shows the scale of the bankruptcy case.
Liquidations became a central part of the process
By early 2023, Voyager had started liquidating crypto holdings to support customer repayment efforts. The source says the company sold about $433 million in stablecoins through Coinbase and Binance US.
It also liquidated all of its MATIC holdings, worth around $53 million, along with tokens including BNB, ONT, OCEAN, WBTC, and YFI. At the same time, Voyager still held ETH, SHIB, and its native VGX token. Those portfolio sales became a key part of the company’s bankruptcy path.
Binance.US bid won court approval
Another major development is Binance.US’s proposed acquisition of Voyager assets. The source states that the $1 billion bid was approved by a New York bankruptcy judge, who rejected a request by the U.S. government to pause the proceedings while an appeal was pending.
That ruling allowed the deal to keep moving. Binance.US aimed to fold Voyager’s technology and customer base into its own platform. Reaction across crypto was mixed in the source material: some saw risk in greater concentration, while others viewed the transaction as a way to stabilize outcomes for Voyager customers.
VGX pricing and an uncertain next chapter
On the token side, the article gives a March 21 reference point, with VGX trading near $0.39. It also cites third-party forecasts from CoinCodex and DigitalCoin, including projections of $0.428169 by the end of March, $0.71 in 2023, and $1.14 by 2025.
Those figures are outside forecasts, not operating results. What remains clear from the source is that Voyager’s situation is still defined by bankruptcy proceedings, asset sales, and the proposed Binance.US transaction. The article also notes that Voyager Digital trades on OTC Markets under the ticker VYGVF and is based in New Jersey, United States.