Voyager Digital Halts Withdrawals and Other Services

Key Takeaways

  • Voyager Digital introduced as we speak that it’s going to quickly droop withdrawals and most different providers.
  • The corporate confronted a liquidity disaster final month, as Three Arrows Capital defaulted on a $665 million mortgage.
  • Although Voyager acquired one other mortgage from Alameda Analysis, it nonetheless halted providers as we speak.

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Voyager Digital has introduced that it’s quickly suspending withdrawals and most different monetary providers.

Voyager Suspends Most Companies

In a weblog submit, Voyager stated that it’s going to quickly droop buying and selling, deposits, withdrawals, and loyalty rewards. This can even stop purchasers from utilizing their Voyager debit playing cards.

Customers will, nonetheless, nonetheless have the ability to view market knowledge on Voyager’s app. The agency can even ship out reward funds for June and says that it plans to proceed paying rewards in July.

The restrictions got here into impact as we speak at 2:00 p.m. ET as we speak, 45 minutes previous to the corporate’s announcement of the change.

Voyager didn’t point out when it could reopen its providers to its purchasers. Reasonably, it stated that it’s “not ready to announce the rest as we speak” and added that it’s “hopeful that [the company] may have extra to share quickly.”

The agency stated that it’s going to discover strategic alternate options, noting that it’s in discussions with different companies “concerning extra liquidity and the go-forward technique for the corporate.”

Voyager didn’t explicitly affirm or deny whether or not these discussions might 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 exchange funding from Three Arrows Capital, which defaulted on a $665 million mortgage this week. Voyager stated as we speak that it’s nonetheless trying to get better 3AC’s mortgage by the court docket course of within the British Virgin Islands.

Voyager just isn’t the one firm that has halted its providers in current weeks. Celsius was the primary crypto agency to droop withdrawals on June 13. Different companies akin to CoinFLEX and Babel Finance have executed the identical in current weeks.

As Bitcoin costs stay at a low not seen since December 2020, it appears possible that different corporations fighting the crypto winter might halt providers within the close to future as properly.

Disclosure: On the time of writing, the creator of this piece owned BTC, ETH, and different cryptocurrencies.

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