For a while, Voyager Digital, which is known for the development and commercialization of digital assets’ buying and selling platform. The most attractive feature that the platform has offered the users is cryptocurrencies.
Voyager Digital Going through Difficult Times
The latest updates surrounding Voyager Digital confirm it has been going through difficult times. The reason that has led to the demise of the digital assets platform is the demise of cryptocurrencies.
While the cryptocurrency community is praying that the digital assets industry returns to its 2021 prime, the sector is constantly going downwards. Due to the constantly plunging cryptocurrency industry, Voyager Digital has been going through a very alarming situation.
Voyager Digital Loses one of its Major Clients
Voyager is now facing major issues such as liquidity and it happened after one of its clients ended up defaulting. The particular client was Three Arrows Capital, a major hedge fund operator for cryptocurrencies.
Three Arrows Capital had acquired a loan amounting to more than $650 million. The hedge fund operator had acquired the loan in the form of Bitcoin (BTC).
To be precise, the loan Three Arrows Capital had acquired was 15,250 Bitcoins. Apart from Bitcoin, the firm had also acquired a $350 million loan in the form of USDC, a USD-pegged stablecoin.
Sam Bankman-Fried Bailed Out Voyager Digital
In the past couple of years, Sam Bankman-Fried, a cryptocurrency billionaire has proven to be a huge helper to cryptocurrency borrowers. He has been lending money over to multiple cryptocurrency startups.
This time, Bankman-Fried had to extend his support and help Voyager Digital come out of trouble, which he did. Alameda Research, the trading firm operated by Sam Bankman-Fried became the entity that supported Voyager Digital during the complex situation.
Alameda Research lent around 15,000 Bitcoins to Voyager Digital and also lent $200 million in cash to match the $200 million USDC figure.
Voyager Digital Still had to suspend its Services
Although Sam Bankman-Fried offered a huge help, still, it wasn’t enough to save Voyager Digital’s sinking ship. The latest reports surrounding Voyager Digital confirm that the firm has suspended loyalty rewards, withdrawals, trading, and even deposits on the platform.
According to the executives at Voyager Digital, they had to make this move in order to save themselves from facing further trouble. They will use this time to generate the funds they are lacking and have to pay back to the clients/lenders.
There are reports of multiple lenders who have approached Voyager Digital to recover their money. It goes to suggest that the firm is going to find it very hard to generate the required funds anytime soon.
After the news started rotating about Voyager Digital, its stocks plummeted 31% taking another major hit to its overall valuation.