The Crypto firm Voyager Digital announced that it has temporarily suspended trading, withdrawals deposits, withdrawals and loyalty rewards as of 2 p.m. ET on July 01. The debit cards will also stop working, as per the announcement.
The decision came after Voyager issued a notice of ‘default’ for hedging funds. Three Arrows Capital failed to pay back a $650 million loan, denominated in bitcoin and USDC.
As a result, Voyager Digital recently issued a notice of default to Three Arrows Capital.
Voyager’s press release also included a balance sheet update. As per the balance sheet, Voyager reported $685.37 million in crypto assets. It also revealed $1.124 billion in crypto assets loaned, which includes the sum let out to Three Arrows.
The firm also highlighted $355.72 million in cash for customers and $168 million in crypto collateral received/held.
The firm also clarified that users can still view market data and trace their profile in the application. Users will receive rewards payments for the month of June, and the firm is planning to continue to pay monthly rewards in July.
Along with all other remedies, Voyager informed that it is actively trying to recover from 3AC through the court-ordered liquidation process in the British Virgin Islands.
Stephen Ehrlich, CEO of Voyager said, “This was a tremendously difficult decision, but we believe it is the right one given current market conditions.”
Also read: Three Arrows Capital Files for Chapter 15 Bankruptcy
