2 years ago
Effective immediately, Voyager Digital has suspended each activity, including trading, deposits, withdrawals, and rewards. The company’s share price fell 38% pursuing the news, portion its autochthonal token VGX is down 9%.
While trading connected the level is presently unavailable, implicit 25% of the trading measurement for VGX occurs connected Binance. At the clip of writing, the token is inactive tradeable connected Binance, Coinbase, FTX, and others.
Voyager precocious received $200 cardinal and 15k BTC from Alameda Research to assistance stabilize its liquidity and screen its vulnerability to Three Arrows Capital. The woody resulted successful FTX CEO Sam Bankman-Fried taking an 11% ownership successful Voyager Digital. The mean stock terms of SBF’s holdings astatine the clip of the SEPA filing connected June 17 was $2.34, with the stock terms present down beneath $0.40. However, documents filed connected June 23 bespeak that Alameda Ventures surrendered 4.5 cardinal shares, reducing its ownership beneath 10%.
Voyager’s determination to halt trading volition ringing alarm bells for investors pursuing the caller drawstring of issues the speech has faced. In a property merchandise issued Friday, the CEO of Voyager, Stephen Ehrlich, announced
“This was a tremendously hard decision, but we judge it is the close 1 fixed existent marketplace conditions. This determination gives america further clip to proceed exploring strategical alternatives with assorted funny parties portion preserving the worth of the Voyager level we person built together. We volition supply further accusation astatine the due time.”
In an enactment of afloat transparency required by Canadian law, Voyager posted details of its equilibrium expanse arsenic of June 30.
Crypto assets – $685,373,000
Crypto assets loaned – $1,124,825,000
Cash held for customers – $355,725,000
Crypto collateral received/ held – $168,685,000
To “support its exploration of strategical alternatives,” Voyager has hired Moelis & Company and The Consello Group arsenic fiscal advisors and Kirkland & Ellis LLP arsenic ineligible advisors. The further enactment volition apt beryllium utilized to found whether its concern is inactive commercially viable going forward.
Unlike different exchanges specified arsenic Celsius and BlockFi, Voyager is simply a publically tradeable institution successful Canada. It, therefore, has a fiduciary work to merchandise timely updates connected factors that whitethorn impact investors’ holdings. The stock terms recovered somewhat aft slipping 38% and is trading astatine $0.31 astatine the clip of press.
The station Voyager Digital suspends trading, deposits, withdrawals – banal drops 38% appeared archetypal connected CryptoSlate.
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