TSX-Listed Voyager Digital ‘Temporarily’ Suspends Trading, Deposits, and Withdrawals – Bitcoin News

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After the TSX-listed Voyager Digital revealed that it was owed $655 million from Three Arrows Capital (3AC), the corporate secured a $500 million credit score line from Alameda Ventures to be able to “safeguard customer assets.” Five days in a while July 1, Voyager introduced the crypto firm was “temporarily suspending trading, deposits, withdrawals and loyalty rewards.”

Another Crypto Firm Freezes Withdrawals, Voyager CEO Says ‘It Was a Tremendously Difficult Decision’

  • The embattled digital currency agency Voyager Digital (OTCMKTS: VYGVF) introduced a brief withdrawal and deposit pause on Friday, based on a latest press release. Voyager defined that it was “temporarily suspending trading, deposits, withdrawals and loyalty rewards, effective at 2:00 p.m. Eastern Daylight Time today.”
  • “This was a tremendously difficult decision, but we believe it is the right one given current market conditions,” Stephen Ehrlich, the chief govt officer at Voyager stated in an announcement.
  • VYGVF shares plummeted to $0.29 per share after the earlier shut at $0.44 per share on Thursday. Shares have misplaced 99% for the reason that inventory’s all-time excessive at $27.39 per share on April 1, 2021.
Voyager Digital (OTCMKTS: VYGVF) closed the day at $0.31 on Friday, July 1, 2022.
  • “This decision gives us additional time to continue exploring strategic alternatives with various interested parties 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 the replace regarding deposits, withdrawals and loyalty rewards, Voyager summarized 3AC’s debt to the corporate. “Voyager also provided the following financial and balance sheet updates, per requirements of Canadian securities laws,” the corporate defined.
  • Just final week, Voyager opened a credit score line with Alameda Ventures and stated it secured a revolving $500 million line of credit from the agency. The announcement got here after Voyager revealed that it was owed $655 million within the type of bitcoin (BTC) and the stablecoin usd coin (USDC).
  • Furthermore, Voyager has additionally disclosed that it’s working with Kirkland & Ellis LLP for authorized help and Moelis & Company and The Consello Group for monetary recommendation.
  • Voyager’s withdrawal pause follows the suspension of withdrawals the crypto lender Celsius initiated weeks in the past. Celsius has but to replace the neighborhood in regards to the firm’s official plans to resolve its monetary hardships.
  • However, on Thursday, Celsius revealed a blog post that claims the agency is “focused and working as quickly as we can to stabilize liquidity and operations.” Celsius additional stated that it was “pursuing strategic transactions,” and “restructuring” liabilities, “among other avenues.”
  • On the identical day Voyager quickly froze the trade’s major operations, Blockfi co-founder Zac Prince disclosed that Blockfi misplaced roughly $80 million attributable to 3AC publicity and confused it was “a fraction of losses reported by others.”
  • Voyager’s announcement additionally mentioned “the court-ordered liquidation process in the British Virgin Islands” because the crypto agency stated that it was “actively pursuing all available remedies for recovery from 3AC.”
Tags on this story
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Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a monetary tech journalist residing in Florida. Redman has been an lively member of the cryptocurrency neighborhood since 2011. He has a ardour for Bitcoin, open-source code, and decentralized purposes. Since September 2015, Redman has written greater than 5,700 articles for Bitcoin.com News concerning the disruptive protocols rising right now.




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