Voyager Digital suspends cryptocurrency withdrawals

Voyager Digital said on Friday it has suspended withdrawals, trading and deposits to its platform and is exploring strategic alternatives to preserve the value of its platform.

The default notice was issued by the company to embattled hedge fund Three Arrows Capital 3 AC days after it failed to make required payments on a loan.

Voyager Chief Executive Stephen Ehrlich said the move gives the company additional time to explore strategic alternatives with various interested parties while preserving the value of the platform.

Voyager has hired Moelis Company and the Consello Group as financial advisors, Kirkland Ellis LLP as legal advisors to support the exploration of strategic alternatives, according to a release by Voyager. On June 22, Voyager signed an agreement with Alameda Ventures Ltd for a revolving line of credit, giving them access to additional capital to meet its customers' needs as the prices of cryptocurrencies take a hit.

In a release, New Jersey-based Voyager said the value of the assets it holds is $685 million, compared to the $1.12 billion in assets it had loaned.

Voyager had lent $350 million and 15,250 bitcoins to 3 AC. A person familiar with the matter told Reuters on Wednesday that 3 AC had entered liquidation.

Voyager stopped withdrawing from the Celsius Network in a month, citing extreme market conditions, as a result of the move by Voyager. There is not yet a return of withdrawals by Celsius for its customers.

Many of the recent problems with the coin can be traced back to the collapse of the so-called stable coin TerraUSD in May, which saw the stable coin lose almost all its value, along with its paired token.

The biggest and most well-known criptome, the biggest and most well-known criptome, is down 58 per cent in the first six months of 2022, its worst first half of the year.