Voyager Digital freezes trading and withdrawals, blames 3AC default
The company has not stated when trading, deposit, withdrawal, and loyalty reward services would resume
By Shashank Bhardwaj
Crypto exchange Voyager Digital announced on Friday, July 1, that it was temporarily stopping trading, deposits, withdrawals, and loyalty rewards on its platforms. The services were completely shut down and the changes were put into motion from 2 pm E.T (11:30 pm IST).
The CEO of Voyager, Stephen Ehrlich, said in a statement, "This was a tremendously difficult decision, but we believe it is the right one given current market conditions. This decision gives us additional time to continue exploring strategic alternatives with various interested parties while preserving the value of the Voyager platform we have built together. We will provide additional information at the appropriate time."
Voyager Digital recently announced that it had major exposure to 3AC (Three Arrows Capital) and had served the hedge fund with a notice of default. 3AC had allegedly failed to make payments on its loan of 15,250 BTC ($294 million) and $350 million USDC.
Voyager Digital also stated that it is currently pursuing all available recovery options from 3AC, including a court-ordered liquidation process in the British Virgin Islands. 3AC was apparently liquidated by the British Virgin Islands immediately after Voyager Digital filed its notice of default. On June 16, it was revealed that 3AC had failed to meet margin calls that week.
Although the company has assured the public that services would soon be restored, it is still unclear when that will happen. The company also said in a statement that it has hired Kirkland & Ellis as legal counsel, while Moelis & Co. and the Consello Group are to serve as financial advisors.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash