Voyager Digital ceases trading and other operations using cryptocurrencies

• Voyager Digital suspends trading, deposits, withdrawals, and loyalty awards.
•  Company is “actively pursuing all possible remedies” to recover more than $650 million it lent to insolvent hedge fund.
•  Cryptocurrency broker has provided Voyager with cash and bitcoin loans totaling $485 million.

As a result of the impact from its loan to the faltering hedge fund Three Arrows Capital, cryptocurrency broker Voyager Digital has “temporarily” suspended trading and other operations.

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Friday at 2pm Eastern Time, Voyager announced it would temporarily cease trading, deposits, withdrawals, and loyalty awards.

Stephen Ehrlich, the company’s chief executive officer, stated that the decision “gives us extra time to continue exploring strategic alternatives with multiple interested partners while maintaining the value of the Voyager platform.”

The company stated it was “actively pursuing all possible remedies” to recover more than $650 million it lent to the insolvent cryptocurrency hedge fund Three Arrows Capital, which liquidated last week.

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Sam Bankman-Fried, the CEO of crypto exchange FTX, has bolstered a number of digital asset companies in recent weeks, amid the backdrop of a credit crisis gripping the crypto markets.

Through his enterprises, the 30-year-old entrepreneur has provided Voyager with cash and bitcoin loans totaling $485 million.

FTX signed a contract with BlockFi on Friday morning that includes an option for the cryptocurrency exchange to acquire the lending platform for up to $240 million.