by IANS |
San Francisco, July 3 (IANS) Cryptocurrency broker Voyager Digital (VYGVF) has suspended all trading, deposits withdrawals and loyalty rewards, as top crypto hedge fund Three Arrows Capital (3AC) filed for bankruptcy in the US, in which Voyager has made significant investments.
Voyager disclosed in a statement that it had significant investments in 3AC, and the Singapore-based hedge fund failed to make payments on its loan of 15,250 BTC ($294 million) and $350 million USDC.
"This was a tremendously difficult decision, but we believe it is the right one given current market conditions," said Stephen Ehrlich, CEO, Voyager.
"This decision gives us additional time to continue exploring strategic alternatives with various interested parties while preserving the value of the Voyager platform we have built together. We will provide additional information at the appropriate time," he added.
Shares of Voyager plunged more than 26 per cent.
Voyager said it is actively pursuing all available remedies for recovery from 3AC, including through the court-ordered liquidation process in the British Virgin Islands.
The development comes as popular crypto tokens such as Bitcoin and Ethereum nosedived by nearly 70 per cent from their record highs amid the economic meltdown.
The Monetary Authority of Singapore last week slammed Three Arrows for providing false information and breaching an asset under management threshold.
The mega fund, founded by Credit Suisse traders Zhu Su and Kyle Davies, once managed an estimated $10 billion in assets.