This past Sunday, crypto broker Voyager Digital posted a series of tweets outlining its search for new strategic options in order to preserve its clients’ funds and maximize their return on investment.
Within days after the suspension of trading, deposits, withdrawals, and loyalty incentives on the platform of the brokerage business, a statement was issued
More than $650 million in claims against the hedge fund Three Arrows Capital (3AC) and over $350 million in cash at the Metropolitan Commercial Bank are among the firm’s crypto assets.
Voyager said in a press statement on Friday that trading, deposits, withdrawals, and loyalty awards on its platform had been discontinued.
It allows the brokerage business more time to continue exploring strategic possibilities with multiple interested parties while safeguarding the value of its platform, according to Stephen Ehrlich, Voyager Digital’s CEO.
After 3AC failed to pay back its debts, Voyager filed a notice of default on the platform. This has had a severe impact on the service.
Despite 3AC’s demise, the brokerage business says it is seeking all legal options to collect, including a court-ordered liquidation procedure in the British Virgin Islands.
As part of its strategic review, Voyager has hired Moelis & Company and The Consello Group as financial consultants, and Kirkland & Ellis LLP as legal counsel.
Voyager has received a $500 million line of credit from Alameda Research, a quantitative trading business, to satisfy its clients’ liquidity needs. As of this writing, the broker has tapped $75 million from the line of credit.
As a result of the present bear market, the corporation has joined a growing list of companies that are struggling to meet their financial obligations.
Celsius, Babel Finance, and CoinFlEX all stopped accepting withdrawals from their platforms last month.
Crypto companies have reduced the quantity of their personnel to comply with the current market crisis and other measures.
Coinbase, the world’s most popular cryptocurrency exchange, lay off 18 percent of its workforce in June.
Many leading cryptocurrency companies, like CryptoCom, BitFi and Gemini have also decreased their workforces.
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