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Key Takeaways
- Voyager Digital introduced immediately that it’ll quickly droop withdrawals and most different companies.
- The corporate confronted a liquidity disaster final month, as Three Arrows Capital defaulted on a $665 million mortgage.
- Although Voyager obtained one other mortgage from Alameda Analysis, it nonetheless halted companies immediately.
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Voyager Digital has introduced that it’s quickly suspending withdrawals and most different monetary companies.
Voyager Suspends Most Providers
In a weblog put up, Voyager mentioned that it’ll quickly droop buying and selling, deposits, withdrawals, and loyalty rewards. This may also stop shoppers from utilizing their Voyager debit playing cards.
Customers will, nonetheless, nonetheless be capable to view market knowledge on Voyager’s app. The agency may also ship out reward funds for June and says that it plans to proceed paying rewards in July.
The restrictions got here into impact immediately at 2:00 p.m. ET immediately, 45 minutes previous to the corporate’s announcement of the change.
Voyager didn’t point out when it could reopen its companies to its shoppers. Moderately, it mentioned that it’s “not ready to announce anything immediately” and added that it’s “hopeful that [the company] could have extra to share quickly.”
The agency mentioned that it’ll discover strategic alternate options, noting that it’s in discussions with different corporations “relating to further liquidity and the go-forward technique for the corporate.”
Voyager didn’t explicitly affirm or deny whether or not these discussions may result in a buyout of the corporate.
Voyager Secured Mortgage Final Week
Voyager Digital has been trying to keep up solvency all through June’s industry-wide crypto liquidity disaster.
On June 22, Voyager secured a mortgage price over $500 million in money and crypto from Sam Bankman-Fried’s Alameda Analysis.
That mortgage was meant to interchange funding from Three Arrows Capital, which defaulted on a $665 million mortgage this week. Voyager mentioned immediately that it’s nonetheless trying to get better 3AC’s mortgage by way of the court docket course of within the British Virgin Islands.
Voyager just isn’t the one firm that has halted its companies in latest weeks. Celsius was the primary crypto agency to droop withdrawals on June 13. Different corporations resembling CoinFLEX and Babel Finance have finished the identical in latest weeks.
As Bitcoin costs stay at a low not seen since December 2020, it appears seemingly that different firms battling the crypto winter may halt companies within the close to future as properly.
Disclosure: On the time of writing, the writer of this piece owned BTC, ETH, and different cryptocurrencies.
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