Cryptocurrency company Voyager Digital said it was “temporarily suspending trading, deposits, withdrawals and loyalty rewards.”
Voyager Digital Among Those Most Affected by Three Arrows Capital Crisis
The move comes days after Voyager filed a default notice to hedge fund Three Arrows Capital for non-repayment of a $650 million BTC and USDC loan.
Voyager was one of several crypto companies that were significantly impacted by Three Arrows.
Voyager’s press release also included a balance sheet update. Voyager reported $685.37 million in crypto assets and $1,124 billion in loaned crypto assets, including 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.
Regarding the suspension of withdrawals, trading and deposits, CEO Stephen Ehrlich said:
“This decision gives us additional time to continue researching strategic alternatives with various interested parties while preserving the value of the Voyager platform we are building together. We will provide additional information at the appropriate time.”
The firm also said that “to support the exploration of strategic alternatives, the company has hired Moelis & Company and The Consello Group as financial advisors and Kirkland & Ellis LLP as legal advisors.”
Similarly, the struggling company BlockFi recently signed a deal with FTX that could benefit them.
*Not investment advice.