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Crypto Lender Voyager Digital Joins Peers, Suspends Withdrawals and Deposits


Crypto lender Voyager Digital suspends withdrawals and deposits

Crypto lender Voyager Digital said on Friday it had suspended withdrawals, trades and deposits on its platform and said it was exploring strategic alternatives to preserve the value of its platform.

The move comes days after the company issued a notice of default to struggling hedge fund Three Arrows Capital (3AC) for the fund’s failure to make required payments on a loan.

In a statement, Voyager chief executive Stephen Ehrlich said the move gives the company “additional time to continue exploring strategic alternatives with various interested parties” while preserving the value of the platform.

Voyager said in a statement that it had hired Moelis & Company and the Consello Group as financial advisors, and Kirkland & Ellis LLP as legal advisors “to support its exploration of strategic alternatives.”

On June 22, Voyager signed an agreement with Alameda Ventures Ltd for a revolving line of credit, accessing additional capital to meet its clients’ liquidity needs as crypto prices take a hit.

In a statement, New Jersey-based Voyager said the value of crypto assets it holds was $685 million, compared to more than $1.12 billion in crypto assets it had loaned out.

Voyager said it loaned 3AC $350 million and 15,250 bitcoins. A person familiar with the matter told Reuters on Wednesday that 3AC was in liquidation.

Voyager’s decision comes less than a month after rival crypto lender Celsius Network suspended withdrawals, citing extreme market conditions. Celsius has not yet opened withdrawals for its customers.

Many recent problems in the crypto industry can be attributed to the dramatic collapse of the so-called stablecoin TerraUSD in May, which saw the stablecoin lose almost all of its value, along with its paired token.

Bitcoin, the biggest and best-known cryptocurrency, is down 58% in the first six months of 2022, its worst first half in history.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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