Voyager Digital today announced that it has suspended withdrawals, deposits, and trading on its platform.
The firm issued a default notice to hedge fund Three Arrows Capital this week. Three Arrows reportedly owes Voyager about $646 million worth of crypto.
Crypto trading platform Voyager Digital announced today that it has temporarily halted all withdrawals, deposits, and trading due to “current market conditions,” Voyager CEO Stephen Ehrlich said in a press release.
Earlier this week, Voyager Digital issued a default notice to Three Arrows Capital, the crypto hedge fund whose apparent recent demise has sent shockwaves throughout the cryptocurrency industry, impacting other firms that had exposure to it.
“This was a tremendously difficult decision, but we believe it is the right one given current market conditions,” said Ehrlich. “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.”
Voyager Digital said that it had loaned Three Arrows Capital 15,250 Bitcoin (currently $296.1 million) and $350 million in USDC stablecoins, totaling just over $646 million at present. On Monday, the platform issued the default notice to the apparently insolvent hedge fund. A default notice is a formal notice to a borrower that it has missed payments on a loan.
On Wednesday, a court in the British Virgin Island ordered the Singapore-based Three Arrows Capital to liquidate its assets to repay debts and financial obligations.
Voyager’s announcement today follows a move on June 22 to slash the platform’s daily withdrawal limit by more than 50%, dropping from $25,000 per day for $10,000 for each customer. The firm’s stock price has fallen 26% today alone, and nearly 87% over the past month.
In today’s announcement, Voyager said that it had retained the services of financial advisors Moelis & Company and The Consello Group, and legal advisors Kirkland & Ellis LLP. “We are in discussions with various parties regarding additional liquidity and the go-forward strategy for the company,” the firm stated in a blog post.
As of June 30, Voyager Digital disclosed that it held $685.3 million worth of crypto assets, but that it had loaned out $1.12 billion worth. It also held $355.7 million worth of customers’ cash, and was holding nearly $168.7 worth of crypto collateral.
Earlier in June, crypto lending platform Celsius similarly paused withdrawals, citing “extreme market conditions” and a need to “stabilize liquidity.” Celsius still has yet to reverse course.
Want to be a crypto expert? Get the best of Decrypt straight to your inbox.
Get the biggest crypto news stories + weekly roundups and more!
Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.