Voyager Digital, the crypto platform listed in Toronto, said it would temporarily suspend trading, deposits, withdrawals, and loyalty rewards from 2:00 p.m. EDT on July 1 after disclosing that Three Arrows Capital (3AC) owed it roughly $655 million. The move came only days after Voyager announced a $500 million revolving credit facility from Alameda Ventures, which it said was intended to help safeguard customer assets.
A difficult decision amid market stress
Chief executive Stephen Ehrlich described the suspension as a “tremendously difficult decision,” but said the company believed it was the right step under current market conditions. According to Voyager, the pause is meant to provide additional time to evaluate strategic alternatives with interested parties while preserving the value of the platform. The company said more information would be shared when appropriate.
3AC debt remains at the center of the crisis
Alongside the operational freeze, Voyager reiterated financial and balance-sheet updates tied to its exposure to 3AC. The company had previously said it was owed about $655 million in bitcoin and USDC. Voyager also disclosed that it is working with Kirkland & Ellis LLP for legal support, while Moelis & Company and The Consello Group are advising on financial matters.
Share collapse and broader industry fallout
Voyager shares fell to $0.29 after closing at $0.44 the day before. From the company’s all-time high of $27.39 on April 1, 2021, the stock has now lost 99% of its value. Voyager also said it is actively pursuing all available remedies to recover funds from 3AC and referenced the court-ordered liquidation process underway in the British Virgin Islands.
The announcement added to growing concerns over liquidity stress across the crypto sector. Voyager’s withdrawal freeze followed Celsius’ earlier suspension of customer withdrawals. On the same day, Blockfi co-founder Zac Prince said Blockfi lost about $80 million from its own 3AC exposure, though he described that figure as only a fraction of losses reported elsewhere in the market.