Cryptocurrency bank Voyager Digital announced this Friday (1st) that it has suspended withdrawals, transactions and deposits and that it is evaluating alternatives to preserve the value of its platform.
The decision was announced after the company issued a default alert to hedge fund Three Arrows Capital (3AC) because of non-payment of loan commitments.
In a statement, Voyager Chief Executive Stephen Ehrlich said the decision gives the company “additional time to continue exploring strategic alternatives with various stakeholders.”
Voyager said in a press release that it has retained Moelis & Company and Consello Group as financial advisors and Kirkland & Ellis as legal advisors.
On June 22, Voyager signed an agreement with AlamedaVentures for a revolving line of credit, gaining access to additional capital to fulfill its customers’ liquidity needs amid plummeting cryptocurrency prices.
The New Jersey-based bank said in a statement that its crypto assets are worth $685 million compared to more than $1.12 billion in digital currency loans.
The institution said it lent $350 million and 15,250 bitcoins to 3AC. A source with knowledge of the matter told Reuters on Wednesday that 3AC has gone into liquidation.
Voyager’s decision came less than a month after rival Celsius Network suspended withdrawals, citing extreme market conditions. Celsius has not yet released the withdrawals of its customers.
Many of the recent troubles in the cryptocurrency industry can be traced back to the spectacular collapse of the TerraUSD stablecoin in May, which saw almost all of its value evaporate.
Bitcoin accumulated a 58% devaluation in the first half of this year, the worst performance for a first half of the year in its history.
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
