Thursday, July 25, 2024

Yet another bites the dust – Voyager Digital pauses all services.

Voyager Digital has halted all services – customer trading, deposits, withdrawals, and loyalty rewards. This comes nine days after the company had called for Three Arrows Capital (3AC) to pay back a $658 million debt. The digital asset brokerage firm is the latest collateral damage of the broad market selloff in the crypto industry.

Stephen Ehrlich, CEO at Voyager, said this has been a really difficult decision to make. But Voyager Digital believes it’s the right one given current market conditions. Ehrlich explained that the company took steps to avoid this outcome but the failure of a borrower, Three Arrows Capital, to repay a substantial loan makes this the right path. He believes this decision will give Voyager Digital time to strengthen its balance sheet.

Voyager Digital revealed in a press statement that it has loaned assets worth over $1.1 billion. Its move to freeze assets reinforces the theme that users don’t have control over assets held in centralized finance. Voyager, as of June 24, has about $137 million in US dollars and owned crypto assets. It has access to a $200 million credit line in cash and USDC stablecoins, as well as 15,000 Bitcoin worth a $318 million revolving credit line from Alameda Ventures.

Voyager Digital is now included in the list of companies, including Celsius, hit by the downturn in the broad crypto market.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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