Key Takeaways
- Voyager Digital introduced as we speak 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 nonetheless halted providers as we speak.
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Voyager Digital has introduced that it’s briefly suspending withdrawals and most different monetary providers.
Voyager Suspends Most Providers
In a blog post, Voyager stated that it’ll briefly droop buying and selling, deposits, withdrawals, and loyalty rewards. This may even stop 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 may 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 might reopen its providers to its purchasers. Somewhat, it stated that it’s “not able to announce the rest as we speak” and added that it’s “hopeful that [the company] can have extra to share quickly.”
The agency stated that it’ll discover strategic alternate options, noting that it’s in discussions with different corporations “concerning 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 value over $500 million in money and crypto from Sam Bankman-Fried’s Alameda Analysis.
That mortgage was supposed to switch 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 way of the courtroom course of within the British Virgin Islands.
Voyager will not be 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 reminiscent of CoinFLEX and Babel Finance have completed the identical in current weeks.
As Bitcoin costs stay at a low not seen since December 2020, it appears seemingly that different corporations combating the crypto winter may 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.
