Voyager Digital stock sinks after halting withdrawals, deposits, trading

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Cryptocurrency brokerage Voyager Digital (OTCQX:VYGVF) shares have tumbled nearly 30% on Friday after it decided to suspend trading, deposits, withdrawals and loyalty rewards at 2:00 p.m. ET.

"This was a tremendously difficult decision, but we believe it is the right one given current market conditions," said Voyager Digital CEO Stephen Ehrlich. "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."

The move comes after its subsidiary Voyager Digital LLC on June 27 had issued a default notice to crypto-focused hedge fund Three Arrows Capital after it failed to make loan repayments.

Meanwhile, Voyager Digital (OTCQX:VYGVF) said the value of its crypto asset holdings was $685.3M as of June 30. That compares with $1.12B in crypto assets it loaned out, including $350M in stablecoin USD Coin (USDC-USD) and 15,250 bitcoins (BTC-USD).

Voyager Digital (OTCQX:VYGVF) is joining a handful of prominent crypto lenders that have suspended customer withdrawals in recent weeks amid liquidity issues. Celsius Network, for example, halted all withdrawals, swaps and transfers in mid-June.

Previously, (June 23) Voyager Digital slashed daily withdrawal limit to $10K in wake of Three Arrows Capital exposure.

Comments

[Over 30 and stressed]

Wow I may toss in a 100$ gamble just for the fun

[GwailoHK]

Voyager Digital Holdings filed for Chapter 11 Bankruptcy July 5th 2022

www.coindesk.com/...

[Did U Think The Ponzi Scheme Would Last?]

Fake money always dies in the fullness of time. Gold and silver have never died. Why is this so difficult for ppl to comprehend?

[braticus]

Get out while you still can, bankruptcy is close

[Moomoo22u2]

The original selling points;
1) non-fiat derived
2) decentralized, unregulated market
3) inflationary immune

[treespace]

@Moomoo22u2 The original warning signals:

1) Fiat tokens printed by infinite brands (forks) competing for attention. Let's please stop with the "scarcity" nonsense.
2) Centralized ownership by the crypto whales who get rich selling tokens to bag holders, who then take the cash and run.
3) Unregulated so there are no rules or regulations.
4) Behaves PRECISELY like a speculative stock with no actual products or services and wholly dependent on investor sentiment.

[Did U Think The Ponzi Scheme Would Last?]

@treespace Well said. As long as something is free to create, people will create it.

[Legitimate]

I remember when this happened to stocks on a daily basis….oh wait, the stock market never shuts down over liquidity issues

[treespace]

@Legitimate I don't remember stocks with tangible assets dropping below the market value of those tangible assets. Think of those who bought at the high and are now sitting on a $50,000 per token loss. This is like paying tens of thousands of dollars to play a game of musical chairs.

It's going to be lower highs and lower lows all the way down to deregulation and outright banning.

[Apt Learner]

I did enjoy this article. Comparing the history of bicycles to crypto in regards to stocks and consolidation. Good read, regardless of how you fall in the discussion.

www.zerohedge.com/...

[Rainmaker Investments LLC]

Am I upset? Yep. Am I surprised it's reached this point? A little. Do I think Voyager is over and done? Nope. I bought alot of the stock at .43 and bought a lot more at .31. I'm barely flat. All my Crypto is on Voyager. They have over $650M cash, just over half is customer's money. 11% of Voyager is Sam. He will own majority of not all soon. Those that hold I believe will be rewarded. This is also why you have a mixed portfolio, I do not want to have a loss but I'm prepared for it. No use spreading FUD. Nobody knows what is next and being an Eyore about it won't help anyone.

[paulformal]

@Rainmaker Investments LLC i bought 1,000 shares at $21.54. I did my research and thought it was good management and a good future. Good luck and all the very best to all.

[Apt Learner]

@paulformal I feel your pain. At this point I’m putting my shares in a drawer to look at in a year.

[Loophole69]

@paulformal - Yikes, that is some paper loss at this point. If you don't think it will shoot up like crazy in the next month, sell it, tax harvest it, buy it back.

While I know what I am about to tell you is different, I sold my muni bond funds to the tune of a 80k loss, waited out the wash period, bought back with more shares as the funds dropped a bit after I sold and now have a few more shares and the income and the harvested tax loss.

[bradlux]

Efficient instantly, Voyager Digital has suspended all exercise, together with buying and selling, deposits, withdrawals, and rewards. The corporate’s share worth fell 38% following the information, whereas its native token VGX is down 9%.

cryptospacey.com/...

[Amos Tuck]

Prediction: This time next year, Sam Bankman-Fried is going to be bankrupt.

[DomL]

@Amos Tuck then its a true bottom in crypto

[ContyC]

Not your keys, not your money.

[bbeltkyle89]

@ContyC Concurrently, "your USD, not your money." Voyager tried to sell the notion that funds were FDIC insured. Of course, FDIC insures the depositor from failure of the bank....so people may not even get that back.

[V1001]

"Nasa starts shutting down Voyager satellite after 50 years"

I read that headline last week. Not a good month for anything Voyager I guess.

These crypto exchanges are falling like dominos. Locking you out of your money. It's all falling apart, cracks everywhere, this is all we see that comes to the surface, behind the scenes it's probably much more bloody, you'd be a fool to keep your wealth tied up in anything crypto.

I read a comment where they said 'people on Solana voted to take control of a whales wallet a couple weeks ago. And people have been *****ed by hard forks before. Not perfectly safe even if it's your wallet'

Not to mention the dozens and dozens of hacks and long history of hacks in exchanges that they cover up and try to keep it taboo to talk about.

This whole show is coming to an end and the whole theater is on fire, get your money out and run for the exits while you can before it's too late.

[DomL]

@V1001 was a sign from space.... the 5th dimension

[9013185412]

I guess the government is going to see a lot of tax write offs on losses this year.
They probably should have stayed out of it and ignored crypto, now they lose tax money on imaginary assets losing money.

[Ben Coggins]

@9013185412 max 3k per year. Or offset gains that few have in 2022. Rest will be carried forward future year gains losses. Though macro suggests might be an ugly 5-10 years

[arok79]

the once high flying stock pumped daily by WSB and Twitter FURUs, is now back where it belongs, a penny stock.

[Summer Wind]

it's real easy to hop the negative bandwagon as this burgeoning industry establishes a foothold. My grandfather back in the 30'ths was encouraged to buy xerox when no one understood it and he did not invest. today's society is all about instant gratification. I submit that patience and timely investing will create a fortune. Good luck to all and don't follow the heard. Sheep get slaughtered.

[Amos Tuck]

@Summer Wind

This isn’t a “nascent” or “burgeoning” industry.

This is a “senescent” or dying industry.

In fact, it’s not an industry at all. It’s a series of nested Ponzi scenes characterized by high leverage, low pricing transparency, and wild volatility.

These nested Ponzi schemes are infested by bad actors and propped up by credulous retail investors (who are rightfully panicking now.)

The greatest misallocation of capital in the history of the planet.

More than $2,000,000,000,000 of wealth has already evaporated and the remaining $1,000,000,000,000 is about to evaporate.

Time to run for the hills!

[T&ETrade]

@Amos Tuck If the economy can absorb a $2-3 trillion hit to the crypto/DeFi sector without seeing a Lehman Bros. moment, that would say a lot about where we’ve come since 2008. My concern is that large institutions may have exposure here or that we are unaware of the extent of hypothecating of the crypto loans and we’re really looking at 10x or 100x exposure. I truly hope it’s not that, as unsophisticated retail participants would be hit harder than they are even now. Especially as we dip into a recession and the job market begins to tighten.

[Summer Wind]

@Amos Tuck That's what makes a market Amos. Whether or not Voyager survives remains to be seen however crypto is here to stay. Lots of money to be made. GLTA.

[Weather Man]

Who didn't see this coming when Seeking Alpha had to add 5 more decimal places to track coins with XXX billion or trillion shares that had coins with dedicated crews pumping and humping on social media?

[mac ron]

to be fair, no finanial institution can withstand a run on deposites, only troube is that Crypto excachanges don't have the gov with deep pockets to bail them out.

[treespace]

@mac ron Consequently there is zero need to run to the bank to take out cash because those dollars are backed by the full faith and credit of the United States of America, or whatever stable government you have a bank account with.

The trouble with crypto exchanges is not the lack of government backing. Commodity prices are not backed by the government so please stop deluding yourself into believing these exchanges are remotely close to being banks. They are just part of the entire global crypto gambling industry.

[57seagull]

@mac ron what about the Wyoming bank that made a $200,000,000 loan secured by Bitcoin? Is the FDIC at risk to protect its depositors? Incidentally, why did the FDIC allow an insured bank to make loans secured by Bitcoin?

[kyle191]

@57seagull ..I think that is called "Money laundering". Bitcoin was touted as a way to stop that ..but in reality, it created the biggest catalyst for money laundering since......money started.

I have to give the crypto world credit. They marketed their product very well to people who wanted to believe in faith, trust, and pixie dust.

[Winnertakesall]

YouTube is being flooded by people posting how much they lost on Crypto. It should be a real wakeup call to get out while you can.

[PanicFirst]

@Winnertakesall Will be interesting though... If crypto sticks around that will be a potential signal of the bottom... I still think there is a ways to go down though... Crypto won't work in a depression.

[wboz]

@Winnertakesall I was possessed to get out when Coinbase said all the bitcoin might be theirs in the event of a bankruptcy. I moved it an hour later .. next day their site was down due to volume.

I am not responsible enough for a cold wallet, so that just means no crypto while the exchanges are shaky.

[wboz]

@wboz it's like the parable of the two campers and the bear. You don't need to run faster than the bear.

[wboz]

I took a look at Coinbase' sources of revenue. It's nearly all trading revenue ie commissions. So while their revenue can dry up as the value of trades falls, COIN itself is unlikely to face a "run" due to a loan that went bad -- unless they have substantially misstated the services they provide.

Any lending platform - is in the crosshairs here. The debts to be repaid no doubt stretch across all of them.

[TastyLaksa]

@wboz No need for a "run" to have revenues drop by 80% or something that triggers a potential bankruptcy though

[Twobeerjohn]

Sam Bankman Fried to the rescue! 😂

[gree3616]

@Twobeerjohn maybe. Question is whether we all get wrecked.

[Liquidity Swords]

@gree3616 honestly I can't believe the shares didn't sink even further after this news, what are traders thinking?

[gree3616]

@Liquid Swords I dunno. That with 3.5 million users, someone may wanna salvage it.