In its Chapter 11 bankruptcy filing on Tuesday, Voyager Digital - based in New Jersey but listed in Toronto - estimated that it had more than 100,000 creditors and somewhere between $1 billion and $10 billion in assets, and liabilities worth the same value.

Chapter 11 bankruptcy procedures put a hold on all civil litigation matters and allow companies to prepare turnaround plans while remaining operational.

"The prolonged volatility and contagion in the crypto markets over the past few months, and the default of Three Arrows Capital on a loan from the company's subsidiary, Voyager Digital, LLC, require us to take deliberate and decisive action now," Voyager Chief Executive Officer Stephen Ehrlich said in a statement.

In a message to customers on Twitter, Ehrlich said the process would protect assets and "maximize value for all stakeholders, especially customers".

Voyager said on Wednesday it had more than $110 million of cash and owned crypto assets on hand. It intends to pay employees in the usual manner and continue their primary benefits and certain customer programs without disruption.

Last week, Voyager said it had issued a notice of default to Singapore-based crypto hedge fund Three Arrows Capital (3AC) for failing to make payments on a crypto loan totalling over $650 million.

Voyager has hired Moelis & Company and The Consello Group as financial advisers, Kirkland & Ellis LLP as legal adviser and Berkeley Research Group LLC as restructuring adviser.

Chapter 11 bankruptcy procedures put a hold on all civil litigation matters and allow companies to prepare turnaround plans while remaining operational.

Voyager had last month signed an agreement with trading firm Alameda Ventures, founded by Sam Bankman-Fried, CEO of major exchange FTX, for a revolving line of credit. A filing with the U.S. Bankruptcy Court Southern District of New York showed that Alameda was Voyager's largest single creditor, with unsecured loans of $75 million.

Alameda did not immediately respond to a request for comment.