- The Voyager has halted its operation from July 1, 2.00 PM ET.
- The 3AC has a default of around $646 million to Voyager, in terms of BTC and USDC.
Another crypto firm got halted this week, Voyager Digital LLC platform officially declared its halting on July 1 by publishing an official blog. The halting started around 2.00 PM ET on the same day. The temporary stop is placed on all kinds of activities like trading, deposits, withdrawals, and loyalty rewards.
Stephen Ehrlich, CEO of Voyager Digital has tweeted:
Voyagers, today we made the difficult decision to temporarily suspend trading, deposits, withdrawals, and loyalty rewards. Read more at: https://t.co/bpGFqQtjAs— Stephen Ehrlich (@Ehrls15) July 1, 2022
In the following threat, Stephen also mentioned that the organization tried various methods to avoid this process. But the failure of the Three Arrow Capital (3AC) default pay has left them with no other choice as of now. Also, he has hopes that the firm will overcome this very soon as they have constructive conversations with many crypto experts.
Reasons for Halting
3AC was loaned 15,250 BTC and $350 million in USDC stablecoins, totaling $646 million at present, by Voyager. And the 3AC was unable to repay the default at the specified time. On June 27, the Voyager issued a default notice to the 3AC. Two days later, the British island court-ordered 3AC to repay all the financial debts by liquidating the assets at hand.
Voyager itself has seem to have accrued $500 million worth loans as cash and crypto from Sam Bankman-Fried’s Alameda Research. And the calculation of the firm was to repay it using the due from 3AC.
But all this was ruined when 3AC collapsed and Voyager had to limit all its operations to bring the situation under control. The action taken was cutting off the withdrawal limit from $25k to $10k, which is more than a 50% reduction. The halting is expected to give the firm some clarity and bounce back into the market.
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