Crypto alternate platform Voyager Digital is asserting a halt on all trades, deposits and withdrawals after one outstanding borrower didn’t repay its debt.
Voyager CEO Stephen Ehrlich says that the crypto alternate needed to cease buying and selling actions because of the failure of an embattled digital asset hedge fund to pay again a “substantial” mortgage.
“At present we made the tough resolution to quickly droop buying and selling, deposits, withdrawals, and loyalty rewards. We’ve taken steps to keep away from this end result – together with securing a credit score facility from Alameda and decreasing day by day withdrawal limits.
The failure of a borrower, Three Arrows Capital (3AC), to repay a considerable mortgage from us makes this the suitable path ahead. This resolution, whereas removed from optimum, will give us time to work to strengthen our steadiness sheet, a essential situation to guard property and protect the way forward for the Voyager platform now we have constructed collectively.”
Final week, Three Arrows Capital was hit with a liquidating order from a court docket within the British Virgin Islands after defaulting on Voyager’s mortgage. Ehrlich says Voyager is on the lookout for methods to get better the capital it misplaced from 3AC.
“Voyager is actively pursuing all accessible treatments for restoration from 3AC, together with by means of the court-ordered liquidation course of within the British Virgin Islands. We’re exploring strategic options and having productive conversations with numerous events, and hope to have extra to share within the close to future.”
Three Arrows Capital has additionally not too long ago filed for Chapter 15 chapter in New York, a transfer that protects its US property whereas the agency faces liquidation within the British Virgin Islands, in keeping with a brand new report by Bloomberg.
Disclaimer: Opinions expressed at The Every day Hodl aren’t funding recommendation. Buyers ought to do their due diligence earlier than making any high-risk investments in Bitcoin, cryptocurrency or digital property. Please be suggested that your transfers and trades are at your personal threat, and any loses it’s possible you’ll incur are your duty. The Every day Hodl doesn’t suggest the shopping for or promoting of any cryptocurrencies or digital property, neither is The Every day Hodl an funding advisor. Please observe that The Every day Hodl participates in online marketing.
Featured Picture: Shutterstock/Tithi Luadthong/Natalia Siiatovskaia