Cryptocurrency change Voyager Digital introduced Friday that it was briefly suspending buying and selling, deposits, withdrawals and loyalty rewards. “The failure of a borrower, Three Arrows Capital, to repay a considerable mortgage from us makes this the precise path ahead,” Voyager Digital CEO Stephen Ehrlich mentioned on Twitter quickly after the service suspension went into impact.
“This choice, whereas removed from optimum, will give us time to work to strengthen our stability sheet, a obligatory situation to guard property and protect the way forward for the Voyager platform we’ve constructed collectively,” Ehrlich continued. A press release issued by the corporate mentioned it has engaged Moelis & Co. and the Consello Group as monetary advisers, and Kirkland & Ellis as authorized advisers.
Voyagers, as we speak we made the tough choice to briefly droop buying and selling, deposits, withdrawals, and loyalty rewards. Read extra at: https://t.co/bpGFqQtjAs
— Stephen Ehrlich (@Ehrls15) July 1, 2022
Voyager Digital issued a discover of default to Three Arrows Capital, often known as 3AC, on Wednesday after the Singaporean crypto hedge fund didn’t repay a 15,250 Bitcoin (BTC) and 350 million USD Coin (USDC) mortgage. Voyager gave assurances on the time that it could proceed operations. The change defined that it had accessed $75 million of a revolving mortgage of 15,000 BTC it had taken out from Alameda Research to cowl its publicity to the loans 3AC was unable to repay. It additionally mentioned it had $137 million in money and crypto available.
A courtroom within the British Virgin Islands reportedly ordered the liquidation of 3AC shortly after Voyager Digital filed its discover of default. Reports emerged June 16 that 3AC had failed to fulfill margin calls that week.
Voyager Digital didn’t point out when it could restore buying and selling, deposit, withdrawal and loyalty reward companies. Its announcement got here within the afternoon earlier than an extended weekend within the United States. Monday is U.S. Independence Day, which is a federal vacation.