• Tue. Aug 2nd, 2022

Voyager Digital ceases operations and other operations using cryptocurrencies

ByHazel R. Lang

Jul 2, 2022

Steve Ehrlich, co-founder and CEO of Voyager

  • Voyager Digital suspends transactions, deposits, withdrawals and loyalty rewards.
  • The company is “actively seeking all possible remedies” to recover more than $650 million it loaned to an insolvent hedge fund.
  • The cryptocurrency broker provided Voyager with cash and bitcoin loans totaling $485 million.

Due to the impact of its loan to failing hedge fund Three Arrows Capital, cryptocurrency broker Voyager Digital has “temporarily” suspended trading and other operations.

Read more: Philippine SEC calls for closure of Nobel laureate Rappler’s news site

At 2 p.m. EST on Friday, Voyager announced that it would temporarily cease trading, deposits, withdrawals, and loyalty rewards.

Stephen Ehrlich, CEO of the company, said the decision “gives us more time to continue exploring strategic alternatives with several interested partners while maintaining the value of the Voyager platform.”

The company said it was “actively seeking all possible remedies” to recover more than $650 million it loaned to insolvent cryptocurrency hedge fund Three Arrows Capital, which went into liquidation last week.

Read more: SEC, State Regulators Investigate Crypto Lender Celsius Over Freezing Accounts

Sam Bankman-Fried, CEO of crypto exchange FTX, has bolstered a number of digital asset companies in recent weeks amid a credit crunch gripping crypto markets.

Through his ventures, the 30-year-old entrepreneur provided Voyager with cash and bitcoin loans totaling $485 million.

FTX signed a deal with BlockFi Friday morning that includes an option for the cryptocurrency exchange to acquire the lending platform for up to $240 million.


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