Crypto trade platform Voyager Digital is saying a halt on all trades, deposits and withdrawals after one outstanding borrower did not repay its debt.
Voyager CEO Stephen Ehrlich says that the crypto trade needed to cease buying and selling actions as a result of failure of an embattled digital asset hedge fund to pay again a “substantial” mortgage.
“At the moment we made the tough resolution to briefly droop buying and selling, deposits, withdrawals, and loyalty rewards. We have now taken steps to keep away from this consequence – together with securing a credit score facility from Alameda and decreasing each day withdrawal limits.
The failure of a borrower, Three Arrows Capital (3AC), to repay a considerable mortgage from us makes this the precise path ahead. This resolution, whereas removed from optimum, will give us time to work to strengthen our stability sheet, a mandatory situation to guard property and protect the way forward for the Voyager platform we’ve got constructed collectively.”
Final week, Three Arrows Capital was hit with a liquidating order from a courtroom within the British Virgin Islands after defaulting on Voyager’s mortgage. Ehrlich says Voyager is on the lookout for methods to get well the capital it misplaced from 3AC.
“Voyager is actively pursuing all obtainable cures for restoration from 3AC, together with by way 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 just lately 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, based on a brand new report by Bloomberg.
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