On July 1st, 2022 Voyager announced that the crypto-only brokerage is temporarily suspending trading, deposits, withdrawals, and loyalty rewards for all customers until further notice.
CEO Stephen Ehrlich stated that the decision was made in order to provide Voyager with “more time to continue exploring strategic alternatives with various interested parties while preserving the value of the Voyager platform we have built together.”
Ehrlich ended his statement with the assurance that more detailed information will be released as developments for the company become more stable.
In Ehrlich’s tweet thread on the matter, many commenters asked when withdrawals would resume but have received no answer from the CEO or anyone from Voyager’s team at this time.
Voyager’s announcement is one of many from other firms that are experiencing margin calls and defaults due to the downturn within the Bitcoin and cryptocurrency markets. On June 27th, the company announced that Three Arrows Capital (3AC) failed to make payments on a loan worth more than $670 million.
During this time, Voyager intended to have all platform features operational for all customers and that the company would pursue recovering funds from 3AC. Since then, Voyager issued a notice of default to 3AC for failure to make the required payments on its previously disclosed loan of 15,250 BTC and $350 million USDC.
On June 24th, Voyager claimed to have a total holdings worth $137 million in U.S. dollars, Bitcoin, and other cryptocurrency holdings. The company also had access to a $200 million credit line in U.S. dollars and USDC stablecoins, along with a 15,000 BTC ($318 million) revolving credit line from Alameda Ventures, FTX’s quantitative trading firm.
A week ago, Alameda had $500 million in financing committed to Voyager but the firm has already used $75 million from that line of credit.
Voyager’s share price traded down as much as 40% during the day and was down by 30% at market close.