Crypto broker, Voyager has suspended deposits, withdrawals, trading, and rewards from its platform after Three Arrow’s Capital defaulted on the loan they took from it. The company made this announcement on its social media platforms on 1 July 2022, approximately nine days after calling out Three Arrow’s Capital (the liquidated $10 Billion crypto hedge fund) to refund the $658 million debt.

Stephen Ehrlich, CEO at Voyager disclosed that they had taken precautionary steps to avoid the current decision but Three Arrow Capital’s failure to repay the magnanimous loan taken from them has made this the best path to go through moving forward.

When a company freezes assets and transactions in the manner that Voyager has just announced, it means that they don’t have the liquidity to meet the current consumer demand and freezing is the best way to contain the situation before the company’s balance sheets implode.

Voyager also released an unaudited balance sheet which says that its loaned assets are worth over $1.1 Billion. This figure includes the 3AC loan. The company also holds 658 million dollars worth of assets, 355 million dollars worth of customer funds, and 168 million dollars of cryptocurrency collateral.

Voyager’s decision to freeze economic activity has strongly reinforced the idea that users don’t have total control of their assets and funds buried in centralized finance. This theme has also been strongly supported by the recent liquidation order on Three Arrows Capital from a British Virgin Islands court.

The result of this court order has continued to ripple across the entire Blockchain ecosystem strongly affecting the financial entities that were in business with 3AC. People are now beginning to look at decentralized finance as the only system that can offer users the semblance of total control of their assets.

Featured image source: Coincu News

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