New Delhi: The results of the huge fall in the cryptocurrency market have started coming. While this fall has sunk crores of crypto investors, on the other hand, the condition of many companies related to the business of crypto has also worsened. Toronto-based cryptocurrency lender Voyager Digital has also become a victim of crypto decline. The company has gone bankrupt and has now applied to declare itself bankrupt. Voyager has filed its Chapter 11 bankruptcy. By doing this, the ongoing cases against the company will now be on hold.
It is worth noting that just a week ago, the company banned the withdrawal, deposit, or trading of cryptocurrencies on its website. According to a report in Moneycontrol, the company submitted for bankruptcy a week later, stating that it will now explore other strategic options, for which it needs time. Toronto-based Voyager estimates it had 100,000 creditors. The company had crypto assets worth several billion dollars.
Got turnaround permission
Due to the filing of bankruptcy of Chapter 11, all the ongoing cases against the company are now suspended. Not only this, the company has now got permission to prepare a plan to bring the company back on track. Last week crypto hedge fund Three Arrows Capital (3AC) filed bankruptcy for Chapter 15. With this move, the company will benefit that if the company’s British Virgin Islands business is sold, then its American assets will be saved.
Industry going through difficult times in India too
In India too, the crypto industry is struggling with declining volumes, taxes, and the implementation of new TDS rules. The purpose of levying TDS on crypto transfers is to capture the details of all transactions relating to virtual digital assets. Crypto is now taxed equal to profits derived from speculative activities such as gambling, and lottery. Digital assets are put in the highest tax band.
