Voyager Digital Halts Trading, Deposits And Other Related Services
Voyager Digital Ltd has decided to halt trade, deposits, withdrawals, and loyalty awards beginning today at 2:00 p.m. Eastern Daylight Time, which is July 1. They said they have come to terms with their decision and are now working to lift the temporary ban on trading, deposits, withdrawals, and loyalty incentives.
On the other hand, the app will allow you to see market data and keep track of the portfolio. You will be eligible to receive payments as part of the rewards program for June, and they intend to continue paying out prizes every month beginning in July.
Voyager Digital announced in a statement on Friday afternoon that it had temporarily halted all of these activities. In this respect, Stephen Ehrlich said that it was a tough decision, but according to them, it may be the appropriate one given the present state of the market. He serves as the Chief Executive Officer of the financial services provider Voyager.
Voyagers, today we made the difficult decision to temporarily suspend trading, deposits, withdrawals, and loyalty rewards. Read more at: https://t.co/bpGFqQtjAs
— Stephen Ehrlich (@Ehrls15) July 1, 2022
Also Read: Deutsche Bank Predicts Bitcoin Would Regain $28K By December
He said they concluded that they would provide the company with more time to investigate strategic options continually. It can provide more information at the appropriate moment. Voyager Digital revealed this information amid a flurry of margin calls. As a direct consequence, it is now considered to be the most recent instance of unintended collateral harm caused by a widespread market decline in cryptocurrencies.
You need to be aware that Bitcoin and Ether are the two traded cryptocurrencies and that since their peaks in November of last year, they have seen a decline of over 70 percent. However, the collapse of the UST stablecoin that took place in May sent shockwaves across the market. After a few days, people discovered the news when a firm client could not make payments, and the customer sought to pay on loan worth hundreds of millions of dollars.
On Monday, the broker informed the market that the central cryptocurrency hedge fund, Three Arrows Capital (3AC), had been provided with a loan of about $670 million. Despite this, he instructed me to keep operating the business as usual while attending to client withdrawals and orders.
Also Read: European Union Releases EU Crypto Regulations Draft
As of June 24, the firm reported around $137 million in U.S. dollars available. Additionally, it purchased cryptocurrency and related assets. In addition, it was mentioned by Voyager Digital that there is access to a credit line of $200 million, which may be paid out in cash or USDC stablecoins. In addition, it can draw a revolving credit line from Alameda Ventures in the amount of 15,000 bitcoins, equivalent to $318 million.
During the previous week, we learned that Alameda has agreed to provide Voyager Digital with funding for $500 million. A further consideration is that the company has already drawn down $75 million from the credit line. On the other hand, it may give the impression that it was not enough to keep the company operating normally.
Most investors in bitcoin and Ethereum, the two largest cryptocurrencies in the world, did not seem shaken by this news. In the direction of the regular market’s finish, it is anticipated that Ethereum will have gained more than 4 percent, while Bitcoin Core (BTC) is projected to gain almost 2 percent.
Also Read: Russia Crypto Tax Exempts Digital Assets From VAT
Due to this judgment, the well-known cryptocurrency staking and the Celsius lending platform are under scrutiny. On June 13, it halted all withdrawals, swaps, and transfers between accounts because market circumstances were so volatile.
Kyle Samani was one of the founders of Multicoin Capital and now serves as the firm’s managing partner. He thought that there needed to be appropriate restrictions as well as openness. Stephen Ehrlich, the chief executive officer of Voyager, said to investigate all of the available strategic options thoroughly, further time is required.
