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Voyager Digital freezes buying and selling, deposits, withdrawals and rewards, blames 3AC default

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Cryptocurrency trade Voyager Digital introduced Friday that it was quickly suspending buying and selling, deposits, withdrawals and loyalty rewards. “The failure of a borrower, Three Arrows Capital, to repay a substantial loan from us makes this the right path forward,” Voyager Digital CEO Stephen Ehrlich mentioned on Twitter quickly after the service suspension went into impact. 

“This decision, while far from optimal, will give us time to work to strengthen our balance sheet, a necessary condition to protect assets and preserve the future of the Voyager platform we have built together,” Ehrlich continued. An announcement issued by the corporate mentioned it has engaged Moelis & Co. and the Consello Group as monetary advisers, and Kirkland & Ellis as authorized advisers.

Voyager Digital issued a discover of default to Three Arrows Capital, also referred to 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 trade 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.

Related: Singapore reprimands 3AC for offering false data

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 satisfy 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.