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Voyager Digital Temporarily Suspends Crypto Withdrawal

Voyager Digital temporarily suspends trading, depositing, and withdrawing activities and loyalty rewards on July 1.

The move comes a few days after Voyager announced that Three Arrows Capital is “forfeiting” more than $662 million, including loans of 15,250 BTC and 350 million USDC.

Voyager is one of several companies significantly affected by Three Arrows Capital (3AC). The unit subsequently declared 3AC.”insolvent” on June 27 and will pursue legal efforts to recover the assets.

According to unconfirmed sources, Voyager lent money to Three Arrows Capital without requiring collateral, putting them at risk of losing more than $662 million in assets if the fund went bankrupt and could not pay.

Regarding the suspension of withdrawals and trading, the CEO Stephen Ehrlich said in a statement:

“This decision gives us more time to consider strategic alternatives with the parties while preserving the value of the Voyager platform we built together. We will provide more information at the appropriate time.”

The company also said that it had hired Moelis & Company and The Consello Group as financial advisors and Kirkland & Ellis LLP as legal advisors to help them make optimal decisions in the current circumstances.

Since the announcement that it is a major creditor of 3AC, a veteran investment fund facing liquidity problems in the past time, Voyager Digital has, in turn, updated its platform policy and reduced the limit as well as the number of withdrawal transactions.