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

TSX-Listed Voyager Digital "Temporarily" Suspends Trading, Deposits, and Withdrawals

After the TSX-listed Voyager Digital revealed that it was owed $655 million from Three Arrows Capital (3AC), the company secured a $500 million credit line from Alameda Ventures in order to “safeguard customer assets.” Five days later on July 1, Voyager announced the crypto company 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 firm Voyager Digital (OTCMKTS: VYGVF) announced a temporary withdrawal and deposit pause on Friday, according to a recent press release. Voyager explained 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 executive officer at Voyager said in a statement. VYGVF shares plummeted to $0.29 per share after the previous close at $0.44 per share on Thursday. Shares have lost 99% since the stock’s all-time high 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 update concerning deposits, withdrawals and loyalty rewards, Voyager summarized 3AC’s debt to the company. “Voyager also provided the following financial and balance sheet updates, per requirements of Canadian securities laws,” the company explained. Just last week, Voyager opened a credit line with Alameda Ventures and said it secured a revolving $500 million line of credit from the firm. The announcement came after Voyager revealed that it was owed $655 million in the form of bitcoin (BTC) and the stablecoin usd coin (USDC). Furthermore, Voyager has also disclosed that it is working with Kirkland & Ellis LLP for legal assistance and Moelis & Company and The Consello Group for financial advice. Voyager’s withdrawal pause follows the suspension of withdrawals the crypto lender Celsius initiated weeks ago. Celsius has yet to update the community concerning the company’s official plans to resolve its financial hardships. However, on Thursday, Celsius published a blog post that says the firm is “focused and working as quickly as we can to stabilize liquidity and operations.” Celsius further said that it was “pursuing strategic transactions,” and “restructuring” liabilities, “among other avenues.” On the same day Voyager temporarily froze the exchange’s main operations, Blockfi co-founder Zac Prince disclosed that Blockfi lost roughly $80 million due to 3AC exposure and stressed it was “a fraction of losses reported by others.” Voyager’s announcement also discussed “the court-ordered liquidation process in the British Virgin Islands” as the crypto firm said that it was “actively pursuing all available remedies for recovery from 3AC.” Tags in this story $500M, $655 million loan, 3AC, 3AC loan default, alameda, Alameda Ventures, Bitcoin (BTC), Blockfi, Celsius, Credit Line, Crypto, Cryptocurrency, defaulters, Digital Assets, ftx, loan, loan default, loans, Stephen Ehrlich, Stock Market, Three Arrows Capital, TSX-listed, usd coin (USDC), voyager, Voyager Withdrawal Freeze, VOYG-T, VOYG-T stock, withdrawals paused

What do you think about Voyager Digital temporarily pausing withdrawals? Let us know what you think about this subject in the comments section below. Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today. Troubled Crypto Hedge Fund 3AC Reprimanded by Singapore"s Monetary Authority, Liquidators Eye Su Zhu"s Properties NEWS | 6 hours ago Mastercard Report: 51% of Survey Respondents Have Completed a Cryptocurrency Transaction in Latam NEWS | 12 hours ago

Image Credits: Shutterstock, Pixabay, Wiki Commons, Editorial photo credit: T. Schneider / Shutterstock.com Previous articleVladimir Putin Says West’s Attempt to ‘Crush the Russian Economy’ Did Not Succeed Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItOman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework

Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)"s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.Following a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method