TSX-listed Voyager Digital ‘temporarily’ suspends trading, deposits and withdrawals – Bitcoin News

TSX-listed Voyager Digital ‘temporarily’ suspends trading, deposits and withdrawals – Bitcoin News

After TSX-listed Voyager Digital revealed it was owed $655 million by Three Arrows Capital ( 3AC ), the company secured a $500 million credit line from Alameda Ventures to “protect customer assets.” Five days later, on July 1, Voyager announced that the crypto company was “temporarily suspending trading, deposits, withdrawals and loyalty rewards.”

Another Crypto Firm Freezes Withdrawals, Voyager CEO Says ‘It Was an Extremely Difficult Decision’

  • Digital currency startup Voyager Digital (OTCMKTS: VYGVF) announced on Friday the temporary withdrawal and pause of deposits, according to recent Media Release. Voyager explained that it is “temporarily suspending trading, deposits, withdrawals and loyalty rewards, effective today at 2:00 PM ET.”
  • “This was an extremely difficult decision, but we believe it is the right one given the current market conditions,” said Stephen Ehrlich, Voyager’s chief executive officer, in a statement.
  • VYGVF shares headlong to $0.29 per share after previously closing at $0.44 per share on Thursday. Shares have lost 99% from the stock’s all-time high of $27.39 per share on April 1, 2021.
TSX-listed Voyager Digital ‘temporarily’ suspends trading, deposits and withdrawals – Bitcoin News
Voyager Digital (OTCMKTS:VYGVF) closed the day at $0.31 on Friday, July 01, 2022.
  • “This decision gives us additional time to continue to explore strategic alternatives with various stakeholders while preserving the value of the Voyager platform we have built together,” Erlich added. “We will add additional information at the appropriate time.”
  • In addition to updates on deposits, payouts and loyalty rewards, Voyager summarized 3AC’s debt to the company. “Voyager has also provided the following financial and balance sheet updates, as required by Canadian securities laws,” the company explained.
  • Just last week, Voyager opened a line of credit with Alameda Ventures and said it secured a revolving credit facility $500 million line of credit from the company. The announcement came after Voyager discovered that it did owed $655 million in the form bitcoin (BTC) and stablecoin USD Coin (USDC).
  • Furthermore, Voyager also disclosed that it works with Kirkland & Ellis LLP for legal assistance and Moelis & Company and The Consello Group for financial advice.
  • Voyager’s withdrawal pause follows a withdrawal suspension initiated by crypto lender Celsius a few weeks ago. Celsius has yet to inform the community about the company’s official plans to resolve its financial difficulties.
  • However, on Thursday, Celsius announced a blog post it says the firm is “focused and working as quickly as possible to stabilize liquidity and operations.” Celsius went on to say that it “pursued strategic transactions” and “restructured” liabilities, “among other avenues.”
  • The same day Voyager temporarily froze the exchange’s main operations, Blockfi co-founder Zac Prince discovered that Blockfi lost approximately $80 million due to exposure to 3AC and emphasized that this was “a fraction of the losses reported by others”.
  • Voyager’s announcement also referred to “court-ordered liquidation proceedings in the British Virgin Islands” as the crypto firm said it was “actively pursuing all available remedies to recover from 3AC.”

Tags in this story

500 million dollars, A loan of 655 million dollars, 3AC, 3AC loan default, Alameda, Alameda Ventures, Bitcoin (BTC), Blockfi, Celsius, Line of credit, Crypto, cryptocurrency, non-payer, Digital assets, ftx, loan, loan default, loans, Stephen Ehrlich, Stock market, Three capital arrows, TSX-listed, USD Coin (USDC), voyager, Voyager Freezing retreat, VOYG-T, VOYG-T stock, withdrawals are paused

What do you think about Voyager Digital temporarily pausing payouts? Let us know what you think about this topic in the comments section below.

TSX-listed Voyager Digital ‘temporarily’ suspends trading, deposits and withdrawals – Bitcoin News

Jamie Redman

Jamie Redman is a news anchor at Bitcoin.com News and a financial technology journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today.

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