Table of Contents Hide
After TSX-listed Voyager Digital revealed that it owed $655 million from Three Arrows Capital (3AC), the company “has been working with customer assets To “protect them,” it secured a $500 million credit line from Alameda Ventures; five days later, on July 1, Voyager announced that the crypto company was “temporarily suspending transactions, deposits, withdrawals and loyalty rewards.
Another crypto company froze withdrawals, and Voyager’s CEO said it was a “tremendously difficult decision.”
- According to a recentpress release, ailing digital currency company Voyager Digital (OTCMKTS:VYGVF) announced a temporary suspension of withdrawals and deposits on Friday. Voyager explained that it will “temporarily suspend transactions, deposits, withdrawals, and loyalty rewards beginning today at 2 p.m. Eastern Daylight Time.”
- “This was a very difficult decision, but we believe it is the right one given current market conditions,” Stephen Ehrlich, Voyager’s chief executive officer, said in a statement.
- VYGVF sharesplungedto $0.29 per share after closing last at $0.44 per share on Thursday. The stock is down 99% since its all-time high of $27.39 per share on April 1, 2021.
- “This decision gives us additional time to continue to explore strategic options with various stakeholders while preserving the value of the Voyager platform we have built together,” Ehrlich added.” We will provide additional information at the appropriate time.”
- In addition to updates on deposits, withdrawals, and royalty fees, Voyager has finalized its 3AC obligations.” Voyager also provided the following financial and balance sheet updates in accordance with Canadian securities law requirements,” the company explained.
- Just last week, Voyager said it opened a line of credit with Alameda Ventures and secured a $500 million revolving line of credit from the company. This announcement came after Voyager revealed that it owed $655 million in the form ofbitcoin (BTC)and stablecoinUS dollar coin (USDC)
- Voyager also revealed that it is working with Kirkland&Ellis LLP for legal support. Ellis LLP for legal support and Moelis & Company and The Consello Group for financial advice.
- Voyager’s suspension of withdrawals follows a suspension of withdrawals initiated by crypto lender Celsius a few weeks ago; Celsius has yet to update the community regarding a formal plan to resolve its financial difficulties.
- However, on Thursday, Celsius released ablog poststating that the company is “focused and working as quickly as possible to stabilize liquidity and operations.” Celsius further stated that it is “pursuing strategic transactions” and “restructuring” its debt “among other measures.”
Image credit: Shutterstock, Pixabay, Wiki Commons, Editorial photo credit: T. Schneider / Shutterstock.com