Voyager Digital Suspends Trading, Sediments, And Withdrawals

Voyager Digital is suspending trading, deposits, and withdrawals as well as loyalty rewards as of 02:00 PM UTC on July 1.

Days after Voyager released a statement warning Three Arrows Capital was owed more than $662 million, including loans of 15,250 BTC and 350 million USDC.

Voyager Digital is one of a number of companies significantly affected by Three Arrows Capital (3AC). The unit subsequently declared 3AC insolvent on June 27 and will pursue legal efforts to recover the assets.

According to unconfirmed sources, Voyager lent money to Three Arrows Capital without requiring collateral, putting them at risk of losing more than $662 million in assets if the fund went bankrupt and could not pay. And most recently, Three Arrows Capital filed for chapter 15 bankruptcy in New York.

In the latest development, Voyager Digital announced to stop trading, block deposit/withdrawal as well as reward users.

Regarding the suspension of withdrawals and trading, CEO Stephen Ehrlich said in a statement:

“This was a tremendously difficult decision, but we believe it is the right one given current market conditions. This decision gives us additional time to continue exploring strategic alternatives with various interested parties while preserving the value of the Voyager platform we have built together. We will provide additional information at the appropriate time.”

The company also said that it has hired Moelis & Company and The Consello Group as financial advisors, and Kirkland & Ellis LLP as legal advisors to help them make optimal decisions in the current circumstances.

Since the announcement that it is a major creditor of 3AC, a veteran investment fund facing liquidity problems in the past time, Voyager Digital has in turn updated its platform policy and reduced the limit as well as the number of withdrawals transactions. BlockFi, a lending company, has also been affected by 3AC and has confirmed a $400 million loan from FTX.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

CoinCu News