- Voyager Digital introduced at the moment that it’ll briefly 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 however halted providers at the moment.
Share this text
Voyager Digital has introduced that it’s briefly suspending withdrawals and most different monetary providers.
Voyager Suspends Most Providers
In a weblog submit, Voyager mentioned that it’ll briefly droop buying and selling, deposits, withdrawals, and loyalty rewards. This will even forestall purchasers from utilizing their Voyager debit playing cards.
Customers will, nevertheless, nonetheless have the ability to view market information on Voyager’s app. The agency will even ship out reward funds for June and says that it plans to proceed paying rewards in July.
The restrictions got here into impact at the moment at 2:00 p.m. ET at the moment, 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 mentioned that it’s “not ready to announce anything at the moment” 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 verify 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 value 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 mentioned at the moment that it’s nonetheless trying to get better 3AC’s mortgage via 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 corporations equivalent to CoinFLEX and Babel Finance have carried out the identical in current weeks.
As Bitcoin costs stay at a low not seen since December 2020, it appears doubtless that different firms fighting the crypto winter might halt providers within the close to future as effectively.
Disclosure: On the time of writing, the writer of this piece owned BTC, ETH, and different cryptocurrencies.