Voyager Digital

Voyager Digital's July 2022 bankruptcy was triggered by the collapse of Three Arrows Capital, a crypto hedge fund that owed Voyager $650 million. When 3AC defaulted, Voyager couldn't meet customer withdrawal demands—demonstrating how counterparty concentration in crypto created contagion pathways that amplified market crashes into platform failures. The mechanism failure was counterparty concentration. Voyager had loaned hundreds of millions to a single borrower without adequate collateral or hedging. When that borrower failed, Voyager failed. This is the biological equivalent of an organism dependent on a single food source—when that source disappears, the organism dies regardless of other capabilities. Voyager's customers lost access to approximately $1.3 billion in crypto assets. The company attempted to sell itself to FTX, but FTX's own collapse killed that deal. Voyager's assets were eventually liquidated, with customers receiving partial recovery. The company became part of the 2022 crypto contagion cascade—Three Arrows Capital's collapse triggering Celsius, Voyager, and eventually contributing to FTX's demise. Each failure created losses that weakened interconnected platforms.