Voyager Digital Suspends Crypto Transaction On its Platform
Voyager Digital has discontinued crypto withdrawal and deposit on its website due to the failure of loan repayment by borrowers.
Details Of Voyager Digital Transactions Suspension
Voyager digital has suspended all crypto transactions on its platforms as one of its top borrowers, Three Arrows Capital (3AC), have been unable to meet up with their loan payment. This announcement came on Friday, and the website is currently down.
A statement by Chief Executive Stephen Ehrlich revealed that this move would allow the company to explore other strategic alternatives and collaboration while preserving its reputation. Voyager has hired Kirkland &Ellis LLP as legal advisors to support this strategy, while the financial advisors are Moelis & Company and Consello Group.
According to a report, the company has loaned out $1.12 billion against $685 million, which it currently holds. 3AC received $350 million and 15,250 bitcoins out of these loans. Unfortunately, an anonymous source reported that 3AC has entered liquidation.
Voyager had, on June 22, partnered with Alameda Ventures to gain access to additional capital to meet customers’ needs as crypto continues to take a hit. After this partnership, the company limited withdrawals to $10,000 and 20 transactions per day. Unfortunately, the company couldn't control the situation with this policy.
Meanwhile, Voyager is not the first company to ‘close its shops’ as recently, rival crypto lender Celsius Network also suspended activities due to unfavorable market conditions.
Voyager is a US-based crypto lending firm offering customers access to assets and commission-free trading’. The company was incorporated in 1993, and Stephen Ehrlich became CEO in 2020.