Voyager Seeks "Strategic Alternatives" After Pausing Withdrawals
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Voyager's last announcement, in which it claimed to be continuing operations and completing customer orders and withdrawals, has been reversed.
Voyager Holds Crypto Assets
The lender stated that it presently maintains claims totaling more than $650 million against 3AC in addition to about $1.3 billion in cryptocurrency assets on its platform in a series of tweets on Saturday.
Voyager claimed to have more than $350 million in cash at the Metropolitan Commercial Bank of New York. The bank stated on Sunday that the insurance provided by the Federal Deposit Insurance Corporation (FDIC) "does not cover the failure of Voyager, any act or omission of Voyager or its personnel, or the loss in value, of cryptocurrencies or other assets."
"The standard FDIC insurance coverage amount is $250,000 per depositor for each account."
Unsavory Market Conditions
Multiple companies continue to chafe under unsavory market conditions furthered by revelations that 3AC entered into liquidation following a British Virgin Islands court order last week. The Singapore-based firm filed for Chapter 15 bankruptcy on Friday while founders Kyle Davies and Zhu Su have been unable to be located, according to the law firm representing 3AC in New York. Voyager enables customers to trade and receive a yield on crypto assets of up to 12%, similar to other lenders in the sector. Other lenders' failure to pay out those returns due to a lack of industry capital and liquidity has led to a suspension in withdrawals from the publicly traded company.