Crypto crash takes down lenders as casualties mount

Voyager Digital bankruptcy filing shows risk of contagion spreading

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Cryptocurrency lender Voyager Digital faces bankruptcy proceedings and likely delisting amid the turmoil in crypto markets. © Reuters

MANAMI OGAWA, Nikkei staff writer

TOKYO -- Plunging values of cryptocurrencies have taken a steep toll on some lenders and hedge funds that specialize in those volatile assets, heightening the risk of a loss of trust in the sector that could create a downward spiral.

Trading was suspended Wednesday in Toronto-listed shares of U.S. crypto brokerage Voyager Digital, for which the Toronto Stock Exchange has launched an expedited delisting review. Over-the-counter trading in American markets was halted as well.

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