In a tweet thread on Sunday, crypto broker Voyager Digital said it is seeking strategic alternatives and that it is focused on protecting assets and maximizing value for its customers. The statement came just days after the brokerage firm suspended trading, deposits, withdrawals, and loyalty rewards on its platform.
The firm said it has approximately $1.3 billion of crypto assets in addition to claims against crypto hedge fund Three Arrows Capital (3AC) of more than $650 million, and over $350 million in cash at Metropolitan Commercial Bank.
Voyager Halts Withdrawals
In a press release on Friday, Voyager said it had suspended trading, deposits, withdrawals, and loyalty rewards on its platform.
Stephen Ehrlich, Chief Executive Officer of Voyager Digital, stated that the decision gives the brokerage firm more time “to continue exploring strategic alternatives with various interested parties while preserving the value” of its platform.
As reported by Coinfomania, Voyager issued a notice of default to 3AC for failing to repay its loans, which has negatively affected the platform. The brokerage firm said it is actively pursuing all available remedies for recovery from 3AC, including through a court-ordered liquidation process in the British Virgin Islands.
Voyager has appointed Moelis & Company and The Consello Group as financial advisors to explore its strategic alternatives and Kirkland & Ellis LLP as legal advisors.
In order to meet customers’ liquidity, Voyager recently secured a $500 million line of credit from quantitative trading firm Alameda Research. Currently, the broker has accessed $75 million of the line of credit.
Meanwhile, the company has now joined a list of firms facing liquidity issues due to the current bear market. Last month, crypto lenders Celsius, Babel Finance, and CoinFlEX suspended withdrawals from their platforms.
Crypto Firms Reduce Workforce Due to Bear Market
Amid the current market crash, crypto firms have been taking several measures like reducing the size of their workforce to cope with the situation. In June, leading cryptocurrency exchange Coinbase laid off 18% of its staff.
Major crypto firms including CryptoCom, BlockFi, Gemini, Rain Financial, BitOasis, and Bybit have also reduced the size of their employees.
Source: https://coinfomania.com/voyager-pursuing-strategic-alternatives/#utm_source=rss&%23038;utm_medium=rss&%23038;utm_campaign=voyager-pursuing-strategic-alternatives