Voyager Digital suspends withdrawals, deposits and trading
Quick Take
- “This was a tremendously difficult decision, but we believe it is the right one given current market conditions,” CEO Stephen Ehrlich said in a statement.
Crypto company Voyager Digital said it was "temporarily suspending trading, deposits, withdrawals and loyalty rewards" as of 2 p.m. ET on Friday.
The move comes days after Voyager issued a notice of default to hedge fund Three Arrows Capital over failed repayment of a $650 million loan, denominated in BTC and USDC. Voyager is one of a number of crypto industry firms significantly impacted by Three Arrows.
Included in Voyager's press release was a balance sheet update. Voyager reported $685.37 million in crypto assets and $1.124 billion in crypto assets loaned, which includes the funds loaned to Three Arrows.
Voyager's update also highlighted $355.72 million in cash held for customers and $168 million in crypto collateral received/held.
Of the withdrawals, trading and deposits suspension, CEO Stephen Ehrlich said in a statement: "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. We will provide additional information at the appropriate time."
The firm also said that "[t]o support its exploration of strategic alternatives, the Company has engaged Moelis & Company and The Consello Group as financial advisors, and Kirkland & Ellis LLP as legal advisors."
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