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The CEO of Benzinga, a media company providing crypto-related news, will be on the unsecured creditor committee in the bankruptcy case for Voyager Digital. These recent court filings reveal that Jason Raznick is among the largest unsecured creditors for Voyager Digital, a cryptocurrency exchange that recently filed for bankruptcy.
Benzinga CEO was among Voyager’s unsecured creditors
Voyager Digital is among the cryptocurrency companies that reported facing a liquidity crisis because of the ongoing market conditions. The exchange filed for Chapter 11 bankruptcy proceedings that allow for a creditor’s committee comprised of individuals and companies with the seven largest unsecured claims against the troubled company.
Being part of the creditor’s committee is a strategic role. One of the committee’s roles is to formulate a plan for restructuring the company to allow the case’s conclusion. It will also decide whether the company needs to be liquidated.
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A virtual court hearing on the bankruptcy proceedings will happen on August 4. It will determine the timeframe within which the creditors and customers must submit proof of their claims against the cryptocurrency exchange. Those who want to be part of the case should write their comments to the court.
The judge handling this case, Michael Wiles, has allowed several attorneys from different jurisdictions to represent unsecured creditors in the case. The judge approved attorney Paul R. Hage to represent Benzinga’s CEO.
Benzinga is a crypto media company that is located in Detroit. The company has less than 200 employees, but its annual revenues range from $15 million to $25 million. Hage said the committee’s goal was to interview and retain professionals and help them maximize their recovery for the parties they represent.
Voyager Digital’s bankruptcy filing
Voyager Digital is among the companies that experienced liquidity issues because of the events that have unfolded in cryptocurrency. The company filed for bankruptcy after Three Arrows Capital defaulted on a massive loan.
Three Arrows Capital was one of the largest hedge funds in the crypto space, and it has filed for bankruptcy after facing liquidity issues because of its exposure to the collapsed Terra LUNA. Voyager halted withdrawals on July 1 after issuing a default notice to 3AC. Most of the letters submitted to the judge overseeing the bankruptcy case are from Voyager customers that want their funds.
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