- Voyager Digital announced today that it will temporarily suspend withdrawals and most other services.
- The company faced a liquidity crisis last month, as Three Arrows Capital defaulted on a $665 million loan.
- Though Voyager received another loan from Alameda Research, it nevertheless halted services today.
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Voyager Digital has announced that it is temporarily suspending withdrawals and most other financial services.
Voyager Suspends Most Services
In a blog post, Voyager said that it will temporarily suspend trading, deposits, withdrawals, and loyalty rewards. This will also prevent clients from using their Voyager debit cards.
Users will, however, still be able to view market data on Voyager’s app. The firm will also send out reward payments for June and says that it plans to continue paying rewards in July.
The restrictions came into effect today at 2:00 p.m. ET today, 45 minutes prior to the company’s announcement of the change.
Voyager did not indicate when it would reopen its services to its clients. Rather, it said that it is “not in a position to announce anything else today” and added that it is “hopeful that [the company] will have more to share soon.”
The firm said that it will explore strategic alternatives, noting that it is in discussions with other firms “regarding additional liquidity and the go-forward strategy for the company.”
Voyager did not explicitly confirm or deny whether those discussions could lead to a buyout of the company.
Voyager Secured Loan Last Week
Voyager Digital has been attempting to maintain solvency throughout June’s industry-wide crypto liquidity crisis.
On June 22, Voyager secured a loan worth over $500 million in cash and crypto from Sam Bankman-Fried’s Alameda Research.
That loan was intended to replace funding from Three Arrows Capital, which defaulted on a $665 million loan this week. Voyager said today that it is still attempting to recover 3AC’s loan through the court process in the British Virgin Islands.
Voyager is not the only company that has halted its services in recent weeks. Celsius was the first crypto firm to suspend withdrawals on June 13. Other firms such as CoinFLEX and Babel Finance have done the same in recent weeks.
As Bitcoin prices remain at a low not seen since December 2020, it seems likely that other companies struggling with the crypto winter could halt services in the near future as well.
Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and other cryptocurrencies.