Once a major feeder fund-type partner with Celsius, Voyager Digital (OTCQX:VYGVF) quelled customer concerns on Tuesday by announcing it had already withdrawn 100% of its customer assets. The statement followed Celsius’ recent declaration it had paused withdrawals, sparking concerns it had become insolvent.
The company’s press release explained that “due diligence and risk management process” prompted its complete departure from Celsius. In an interview on Monday, Voyager Digital chief exec Steve Erlich said the firm’s relationship with Celsius had ended “a while ago.”
“Our customers’ assets are safe and we are processing everything as normal,” he said (via Benzinga).
Voyager is a publicly traded company with compliance and regulatory obligations. At the start of the year, the Canadian company’s market capitalization was $1.8 billion ($2.3 billion CAD). Today, it has fallen to $300 million ($387 million CAD).
Coinciding with the collapse of crypto markets, the company has shed 86% of its valuation year-to-date.
In its press release regarding the termination of its relationship with Celsius, Voyager Digital stressed its “consistently high level of transparency” and “risk management practices.” It assured the public that despite its terrible stock performance this year, it “holds a strong position” and “has deep financial expertise.”
Nevertheless, US authorities previously served Voyager Digital with a cease-and-desist order. Specifically, state regulators in Indiana, Kentucky, New Jersey, Oklahoma, Alabama, Texas, Vermont, and Washington ordered Voyager to halt its offering of interest-bearing crypto accounts.