Crypto broker Voyager Digital suspends all operations

The platform holds about $685 million in digital assets in its accounts, while the volume of loans issued exceeds $1,1 billion

04.07.2022 - 08:00

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What’s new? On July 1, US cryptocurrency broker Voyager Digital announced a temporary suspension of trading, deposits, and withdrawals, as well as rewards accrual. According to a press release, the platform holds about $685 million in digital assets in its accounts, while the volume of loans issued exceeds $1,1 billion. Of that amount, about half was issued to the cryptocurrency hedge fund Three Arrows Capital (3AC), which filed for bankruptcy in the United States on July 2.

Voyager Digital’s press release

What else does the press release say? The cryptocurrency broker had previously sent 3AC a notice of default on a loan of 15 250 BTC and $350 million. Voyager representatives note that they are using all available means to recover the funds, including through 3AC’s court-ordered liquidation process in the British Virgin Islands. It was previously reported that creditors could not seize the fund’s assets in the US until the end of this procedure due to the form of bankruptcy filing.

Alameda Research, owned by the FTX chief Sam Bankman-Fried, provided Voyager with two loans to cover losses due to debt from 3AC. FTX issued a $250 million loan to the BlockFi platform to address a similar problem. It was later revealed that the exchange would lend BlockFi $400 million with an option to buy it back at a price of up to $240 million.

Voyager Digital is a US-based cryptocurrency platform founded in 2018. The CEO is Steve Ehrlich. More than 100 crypto assets are available for trading on it. Voyager has its own mobile app, as well as a debit card. The company’s shares trade on the Canadian TSX exchange under the ticker VOYG at $0,43, down by 20% per day (Investing.com’s data as of July 4).

For more details on the experts’ opinions regarding the consequences of 3AC’s collapse, see the GetBlock Magazine editorial’s feature.

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