- 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.
- Although Voyager received another loan from Alameda Research, it discontinued its services today.
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Voyager Digital has announced that it will temporarily suspend withdrawals and most other financial services.
Voyager has discontinued most services
Voyager said in a blog post that it will temporarily suspend trading, deposits, withdrawals and loyalty rewards. This will also prevent customers from using their Voyager debit cards.
However, users will still be able to view market data on the Voyager app. The company will also be sending out bonus payments for June and says it plans to continue paying bonuses in July.
The restrictions went into effect today at 2:00 p.m. ET today, 45 minutes before the company announced the change.
Voyager did not indicate when it would reopen its services to its customers. Instead, he said he was “not in a position to announce anything else today” and added that he was “hopeful that [the company] We’ll have more to share soon. “
The company said it would explore strategic alternatives, noting that it was in discussions with other companies “regarding additional liquidity and the company’s going strategy.”
Voyager has not explicitly confirmed or denied whether these discussions could lead to a purchase of the company.
Voyager secured loan last week
Voyager Digital has been trying to maintain solvency throughout the June industry-wide crypto liquidity crisis.
On June 22, Voyager secured a loan of more than $500 million in cash and crypto from Sam Bankman-Fried’s Alameda Research.
The 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 trying to recover the 3AC loan through court proceedings in the British Virgin Islands.
Voyager isn’t the only company that has halted its services in recent weeks. Celsius was the first crypto company to suspend withdrawals on June 13. Other companies such as CoinFLEX and Babel Finance have done the same in recent weeks.
With bitcoin prices still at their lowest levels since December 2020, it is possible that other companies struggling with the crypto winter may shut down services in the near future as well.
Disclosure: At the time of writing, the author of this article owns BTC, ETH, and other cryptocurrencies.