Connect with us

Business

Crypto Broker Voyager Digital Suspends All Trading, Deposits, And Withdrawals

Avatar of Arsi Mughal

Published

on

Crypto Broker Voyager Digital Suspends All Trading, Deposits, And Withdrawals

(CTN News) – In a statement released Friday afternoon, Voyager Digital said all customer trading, deposits, withdrawals, and loyalty rewards have been halted.

“Given current market conditions, we believe this was the right decision,” said Stephen Ehrlich, CEO of Voyager Capital.

As Erlich explained, the decision gives the firm more time to explore strategic alternatives with various interested parties and to provide additional information as necessary.

Voyager’s announcement comes amid a flurry of margin calls and defaults across the sector, turning it into the latest collateral damage of the broader crypto selloff.

Since their peaks last November, bitcoin and ether have fallen more than 70%, and the collapse of the UST stablecoin in May sent shockwaves through the market.

Earlier this month, one of Voyager’s customers failed to make payments on a loan worth hundreds of millions of dollars, fueling growing concerns about a contagion effect of insolvency.

The broker announced Monday that prominent crypto hedge fund Three Arrows Capital (3AC) had defaulted on a $670 million loan. In the meantime, Voyager said it would continue to fulfill customer orders and withdrawals while pursuing recovery from 3AC.

Voyager reported having approximately $137 million in U.S. dollars as of June 24. Also, FTX has access to a $200 million credit line in cash and USDC stablecoins, as well as a $15,000 bitcoin ($318 million) revolving credit line from quantitative trading firm Alameda Ventures.

Must Read: ‘SEO’ Software Market To Grow Massively By 2031

Voyager pulled $75 million from Alameda’s line of credit last week, but it appears that wasn’t enough to continue business as usual.

Investors in the world’s two largest cryptocurrencies by market cap seem unfazed by the news so far. By the end of regular market hours on Wall Street, bitcoin was up about 2% and Ethereum was up more than 4%.

Voyager competes with crypto lending firm BlockFi, which has also been hit by the recent liquidity crunch. As reported by The Block, FTX just signed a $680 million credit deal to acquire BlockFi.

As with Celsius, Voyager paused all withdrawals, swaps, and transfers between accounts on June 13 because of “extreme market conditions.”. No further guidance has been provided by Celsius.

Continue Reading

CTN News App

CTN News App

české casino

Recent News

BUY FC 24 COINS

compras monedas fc 24

Volunteering at Soi Dog

Find a Job

Jooble jobs

Free ibomma Movies