Crypto change platform Voyager Digital is saying a halt on all trades, deposits and withdrawals after one distinguished borrower did not repay its debt.
Voyager CEO Stephen Ehrlich says that the crypto change needed to cease buying and selling actions because of the failure of an embattled digital asset hedge fund to pay again a “substantial” mortgage.
“At this time we made the troublesome choice to quickly droop buying and selling, deposits, withdrawals, and loyalty rewards. We’ve taken steps to keep away from this consequence – together with securing a credit score facility from Alameda and reducing every day withdrawal limits.
The failure of a borrower, Three Arrows Capital (3AC), to repay a considerable mortgage from us makes this the correct path ahead. This choice, whereas removed from optimum, will give us time to work to strengthen our stability sheet, a mandatory situation to guard belongings and protect the way forward for the Voyager platform we now have constructed collectively.”
Final week, Three Arrows Capital was hit with a liquidating order from a courtroom within the British Virgin Islands after defaulting on Voyager’s mortgage. Ehrlich says Voyager is in search of methods to recuperate the capital it misplaced from 3AC.
“Voyager is actively pursuing all obtainable cures for restoration from 3AC, together with by means of the court-ordered liquidation course of within the British Virgin Islands. We’re exploring strategic alternate options and having productive conversations with varied events, and hope to have extra to share within the close to future.”
Three Arrows Capital has additionally just lately filed for Chapter 15 chapter in New York, a transfer that protects its US belongings whereas the agency faces liquidation within the British Virgin Islands, in keeping with a brand new report by Bloomberg.
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