Also today... a British jeweler launches an unusual lawsuit after paying a $7.5 million Bitcoin ransom.
Voyager Digital has filed for bankruptcy protection. It comes after the company suffered losses of $650 million on a loan given to Three Arrows Capital. It's hoped the Chapter 11 process will allow customers to regain access to funds in their accounts. Voyager's CEO Stephen Ehrlich said a reorganization is the best way to protect the $1.3 billion in assets currently on the platform. He also warned that "deliberate and decisive action" was needed now. Customers with crypto in their accounts would receive some of their coins back — alongside proceeds from the recovery against Three Arrows Capital, shares in a newly reorganized company, and Voyager tokens.
Chancellor Rishi Sunak has suddenly resigned from Boris Johnson's government. The shock departure could put the U.K.'s ambitions to become a "global cryptoasset hub" into doubt. He quit in response to a series of scandals affecting the Prime Minister, and Sunak suggested the pair had "fundamental differences" on economic policy. Back in April, Sunak unveiled plans to ensure stablecoins would become a recognized form of payment in the U.K. — with the Royal Mint set to produce a non-fungible token this summer. Johnson's government is now in serious peril, and there's a real possibility he could be ousted. Rival parties had criticized Sunak's crypto policy.
Meta is determined to push ahead with plans to add NFTs to Facebook and Instagram — despite the current bear market. That's according to the tech giant's newly appointed head of fintech Stephane Kasriel, who has given an interview to the Financial Times. He told the newspaper: "The opportunity [Meta] sees is for the hundreds of millions or billions of people that are using our apps today to be able to collect digital collectibles." Despite his bullish tone, Kasriel conceded that we have now seen a "pit of despair" take hold of the crypto markets — and a lot of the projects and NFT collections created during last year's mania will not survive.
A luxury jeweler paid a $7.5 million ransom in Bitcoin to Russian hackers — and now, it's launched a lawsuit to get this money back. Graff Diamonds is taking legal action against its insurance company, and alleges the payment should be covered under its policy. Last year, the Conti ransomware group stole confidential files belonging to high-end clients including Donald Trump, David Beckham and the royal families of Saudi Arabia and Qatar. A spokesman for Graff Diamonds told Bloomberg the firm has been "extremely frustrated and disappointed" over the lack of compensation. The issue of whether companies should pay crypto ransoms has sparked fierce debate.