Voyager, a crypto dealer, has suspended withdrawals, buying and selling, deposits and loyalty rewards from its app following Three Arrows Capital’s default on its mortgage.
The corporate made the announcement on July 1, 9 days after it referred to as for Three Arrows Capital, the $10B troubled crypto hedge fund, to pay again a $658M debt.
“We now have taken steps to keep away from this end result,” Stephen Ehrlich, CEO at Voyager tweeted, “however the failure of a borrower, Three Arrows Capital, to repay a considerable mortgage from us makes this the suitable path ahead.”
Ehrlich went on to say that the choice will give the corporate time to strengthen its stability sheet.
Voyager mentioned in an unaudited stability sheet replace introduced as a part of its press launch, that it has loaned property value over $1.1B, a determine that features the mortgage to 3AC, whereas it holds $685M of property, $355M of shoppers’ money, and $168M of crypto collateral.
Voyager’s Unaudited Steadiness Sheet. Supply: PR NewswireWhen an organization freezes withdrawals, it usually means it doesn’t have sufficient liquid capital to satisfy demand. Because the crypto market slumps deeper right into a bear market, merchants proceed to promote tokens and withdraw property from crypto platforms.
Voyager’s determination to freeze property reinforces a theme which has change into clear over the previous month as the consequences of Three Arrows Capital’s fall proceed to ripple within the ecosystem – customers don’t have management over property held in centralized finance.
