Well, Voyager Digital suspends payout due to bankruptcy of Three Arrows

The crypto exchange Voyager Digital announced yesterday that it is now imposing a temporary trading and payout freeze. Following the announcement, Voyager CEO Stephen Ehrlich said: “Since our borrower Three Arrows Capital (3AC) is unable to repay a significant loan, this is the only logical step for us.”

“While this decision is suboptimal, it gives us time to strengthen our financial position, which is urgently needed to continue to safeguard Voyager’s fortunes and future,” Ehrlich continued. As the company further revealsfinancial advisers were brought on board from Moelis & Co. and the Consello Group, while legal assistance was obtained from the law firm of Kirkland & Ellis.

Voyager Digital defaulted Three Arrows Capital earlier in the week after the crypto hedge fund issued a 15,250 Bitcoin (BTC) and $350M Coin (USDC) was unable to repay the strong loan on time. At that point, however, the crypto exchange had promised that it would nonetheless continue to operate as usual. This should be guaranteed, among other things, by a 15,000 BTC loan from Alameda Research, and the trading platform would still have capital of 137 million US dollars available.

Shortly thereafter, however, a district court in the British Virgin Islands ordered the liquidation of 3AC. The impending insolvency of the crypto hedge fund has actually been around since June 16th.

Voyager Digital has not indicated when the trading and payout freeze will be lifted. The announcement comes just ahead of a long weekend in the American market, with Monday, July 4th celebrating Independence Day in the United States.

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