Voyager Digital joins the growing list of crypto companies suffering from liquidity problems by announcing the suspension of transactions, deposits, withdrawals and rewards.
According to the announcement, this will allow the company some time to explore “strategic alternatives and preserve the value of the Voyager platform.” He claims to be in talks with various parties and will share new information when it does.
The decision means the Voyager debit card will not work at this time. However, the app will still work and users will be able to view market data and track their portfolios.
Additionally, Voyager says it would still pay rewards for June and plans to continue paying monthly rewards in July.
The announcement went into effect Friday at 2 p.m. ET, more than half an hour before the exchange announced it. He did not say when he would resume operations, as he is “unable to announce anything else today.”
But the exchange hopes it will be soon. Additionally, the company said its strategic alternatives involve discussing “additional cash and the company’s strategy going forward” with other companies. He did not rule out the possibility of a takeover.
Meanwhile, Voyager’s stock has fallen over 30% while its native token VGX has lost over 16% of its value in the past 24 hours.
Three Arrows Capital in default on Voyager loan
With the move, the company has become the latest in a growing line of crypto firms facing a liquidity crunch. Its liquidity crisis began last month after Three Arrows Capital defaulted on a $665 million loan.
Although it secured a loan of over $500 million in USDC and bitcoins from Alameda Research to cover the default, it appears the company still faces challenges.
In its announcement, the crypto firm said it was trying to recover the loan from 3AC using legal proceedings in the British Virgin Islands. 3AC has already filed for Chapter 15 bankruptcy in New York.
Other companies like Celsius Network, Babel Finance and CoinFLEX have been forced to suspend withdrawals due to the current market crash.
With this news piling up on the woes of the already beleaguered crypto industry, market capitalization has shrunk by 0.9% in the past 24 hours. There are only a few percentage drops left to get into the $800 billion range.
Bitcoin continued to trade below $20,000 and suffered a 1% decline in the past 24 hours. Other top 10 cryptocurrencies like Ethereum, BNB, Cardano and others have a similar price trajectory.
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