Voyager Digital Looks To Distance Itself From Celsius Amid Crypto Bank Run

Voyager Digital (TSX: VOYG) is looking to distance itself from Celsius following the ongoing implosion of that service. The firm this morning issued what it refers to as an update on its asset and risk management, in light of the events.

Voyager referred to itself as having a “consistently high level of transparency,” a statement which it evidently bases on the fact that it is required to file quarterly financial statements due to being a publicly traded firm, along with the risk disclosures that are required by regulators.

Outside of this stretch of a comment, the company highlighted that it does not conduct DeFi lending activities, algorithmic stablecoin staking or lending, and doesn’t deal in derivative assets. As for its lending and asset management services, the company works with “a select group of reputable counterparties,” whom are vetted via the risk committee.

Notably, the company specifically names Celsius in relation to its risk disclosure, stating that despite a partnership announced in 2019, due to “ongoing due diligence” and their “risk management process,” the firm has zero assets currently placed with Celsius. No details were provided in terms of when assets were last placed with the company.

At the time of the 2019 partnership announcement, CEO Stephen Ehrlich had commented that “Bringing Voyager customers more products to enable them to be successful in the ever-growing digital financial service market is core to the Voyager value proposition.” At the time the partnership was to manage “certain assets,” also specifics were not provided.

The duo, along with Gemini Trust Co, were reportedly under the microscope by the US Securities and Exchange Commission earlier this year in connection with an inquiry into firms that pay interest on virtual token deposits.

Voyager Digital last traded at $2.00 on the TSX.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Silver’s Finally Breaking the System | Keith Neumeyer – First Majestic

The Best News for Gold Was the Drop! – Peter Grandich

McEwen Copper: The Los Azules Feasibility Study

Recommended

Silver47 Completes Property-Wide Geochemical, Rock Sampling Program At Adams Plateau, Identifies Numerous Targets

Altamira Gold Identifies Presence Of Second Mineralized Porphyry Body At Cajueiro

Related News

Celsius Finally Admits Bankruptcy, Files Chapter 11

After cleaning out all its on-chain debt, Celsius Network has filed for a Chapter 11...

Thursday, July 14, 2022, 03:40:00 PM

Examiner: Celsius Didn’t Deliver From Inception, Used Customer Funds To Prop Up CEL Token

According to an examiner’s investigation into the crypto lender’s operations before its collapse last year,...

Wednesday, February 1, 2023, 11:40:00 AM

Voyager Digital Returns To Bidding Process After FTX Bankruptcy

Voyager Digital shareholders have been kicked again. The firm has returned to evaluating strategic options...

Saturday, November 12, 2022, 11:10:00 AM

Voyager Digital Records Over 130,000 New Funded Accounts In April

Voyager Digital Ltd. (CSE: VYGR) reported today in its April 2021 update that it added...

Monday, May 3, 2021, 09:35:00 AM

Binance Bitcoin Balance Takes A Hit After Judge Stops Voyager Deal

Over 4,761 Bitcoins have been withdrawn from the Binance crypto exchange in the last 24...

Tuesday, March 28, 2023, 12:08:00 PM