Voyager Digital suspends trading, deposits, withdrawals, and loyalty rewards

Voyager Digital has announced that it is temporarily suspending trading, deposits, withdrawals, and loyalty rewards on its platform.
Voyager Digital has announced that it is temporarily suspending trading, deposits, withdrawals, and loyalty rewards on its platform.

Crypto broker Voyager Digital has announced that it is temporarily suspending trading, deposits, withdrawals, and loyalty rewards on its platform. According to the official announcement, the suspension has already been effective since 2:00 PM Eastern Daylight Time, July 1.

It cited the current market conditions as the primary reason behind the move. The CEO of the Company, Stephen Ehrlich, called the decision “tremendously difficult” and stated that it offers additional time “to continue exploring strategic alternatives with various interested parties while preserving the value of the Voyager platform [team] has built together.”

Voyager seems to be breaking the promise

Previously, Voyager Digital issued a notice of default to Three Arrows Capital for not being able to pay its previously disclosed loan of 15,250 Bitcoin and $350 million USDC, as TheCoinRise reported. As 3AC has shown clear signs of failure in paying the loan, Voyager’s legal team is working with the Company’s advisors to find the best way forward.

At the time, Voyager had said that despite the ongoing situation, it would continue to operate normally and reassured its customers that it had major liquidity from the availed credit facility from Alameda Ventures. However, with the latest announcement, it seems that it has broken that promise.

The Company has also revealed that it has turned to Moelis & Company and The Consello Group as financial consultants, as well as Kirkland & Ellis LLP as legal advisors, in order to assist it in the assessment of potential strategic alternatives.

In addition, Voyager has supplied the following financial and balance sheet updated in accordance with the prerequisites of the Canadian Securities Laws. 

Commenting on the resuming date of its services, the Company said that it is working hard to lift the suspension. It added:

“While we are not in a position to announce anything else today, we are hopeful that we will have more to share soon. We will continue to keep you updated.”