Voyager Digital Temporarily Suspends All Trading, Withdrawals and Deposits

Shares of the troubled digital broker plunged more than 26% in U.S. trading on Friday.

AccessTimeIconJul 1, 2022 at 7:29 p.m. UTC
Updated May 11, 2023 at 6:46 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Crypto broker Voyager Digital (VYGVF) is temporarily suspending all trading, deposits, withdrawals and loyalty rewards, the company announced Friday. Even the Voyager-issued debit card will stop working for owners. The changes were effective as of 2 p.m. ET.

  • "This was a tremendously difficult decision, but we believe it is the right one given current market conditions," said Stephen Ehrlich, CEO of Voyager, in a statement. "This decision gives us additional time to continue exploring strategic alternatives with various interested parties while preserving the value of the Voyager platform we have built together. We will provide additional information at the appropriate time."
  • Voyager recently disclosed it had significant exposure to Three Arrows Capital (3AC) and had issued a notice of default to the beleaguered hedge fund. Voyager claims 3AC has failed to make require payments on its loan of 15,250 BTC ($294 million) and $350 million USDC. Voyager said it is actively pursuing all available remedies for recovery from 3AC, including through a court-ordered liquidation process in the British Virgin Islands.
  • Shares of Voyager plunged more than 26% to $0.33 in Friday’s U.S. trading (shares of the firm’s main listing in Canada were not trading on Friday because of the country's Canada Day holiday). Shares are down more than 97% year to date.
  • Voyager had earlier received a cash/USDC loan of $200 million and a revolving credit facility for 15,000 bitcoin ($294 million) from quantitative trading firm Alameda Research, which is owned by FTX CEO Sam Bankman-Fried, to safeguard Voyager's customer assets.
  • Ehrlich did not immediately respond to a request for additional information.

UPDATE (July 1, 19:41 UTC): Updated with information about Three Arrows Capital in second bullet point.

CORRECTION (July 1, 19:57 UTC): Corrected information about Voyager's stock price movement in deck and third bullet point.

UPDATE (July 1, 20:32 UTC): Updated with information about the Alameda Research loan.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.

Nelson Wang

Nelson Wang was CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about