The Story of Voyager and 3AC — What Caused it to Stop all Withdrawals and Trading Activity

On the 1st of July 2022 yet another cryptocurrency lending app has stopped all trading activity, deposits and most importantly off-platform withdrawals, as the company’s future remains uncertain. This took place shortly after Three Arrows Capital defaulted on a $670 million loan.

“This was a tremendously difficult decision, but we believe it is the right one given current market conditions,”

— said Stephen Ehrlich, CEO of Voyager

But what has caused Voyager to get to this stage anyway? This article presents the Entire situation by going all the way back to the root cause of why crypto companies keep failing, and how Terra LUNA is still connected to this as the shockwave keeps travelling through the Cryptoverse.

What does Voyager do?

Most commonly referred to as a mobile cryptocurrency investing app, Voyager — used to — allow users to buy, sell, swap and stake cryptocurrency all through a mobile interface. In addition to this, Voyager seems to have offered some relatively competitive services such as commission-free trading and earing up to 12% monthly on certain assets.

Just as a sidenote here, most crypto companies that have crashed during this bear market did so as a result of trying to balance out a value offering that was simply unsustainable such as Celsius and Terra.

On the Voyager website, there are currently no notifications that most services are stopped, and Voyager seems to still be advertising rewards with promises such as “Earn up to 12% each month on a wide selection of tokens” ( voyager.com, 2022).

In addition to the monthly rewards, Voyager are also offering a MasterCard debit card with up to 9% rewards.

Finally, Voyager also promises an easy-to-use mobile app and, arguably the most important promise of all, safety and security of your investment:

“Your USD is held by our banking partner, Metropolitan Commercial Bank, which is FDIC insured, so the cash you hold with Voyager is protected.” (voyager.com, 2022)

To sum up this section, Voyager:

• High APY for crypto on…