In spite of several turbulent weeks involving lawsuits and even suspending trading on its platform, Voyager Digitals’ native token VGX is rallying. After Voyager Digital issued a notice of default to crypto hedge fund Three Arrows Capital (3AC) and filed for bankruptcy protection, the VGX altcoin surged from $0.15 to $1.03 in just one day, a 586% gain.
Back in late June, Voyager first filed a formal notice of default to 3AC seeking repayment of a previous loan of about $650 million comprised of 15,250 Bitcoin (BTC) as well as $350 million worth of the dollar-pegged stablecoin US Dollar Coin (USDC).
Voyager then announced several days later that it was temporarily halting trading activities on its platform due to liquidity issues arising from 3AC’s outstanding debt, before last week initiating a restructuring process by filing for bankruptcy protection.
CNBC reported on Tuesday that a federal judge in New York had frozen Three Arrows Capital’s assets at a time when the whereabouts of fund co-founders Zhu Su and Kyle Davies remains unknown.
Later in the day, the VGX token began its massive upward swing, although there is no direct evidence the court order caused Voyager to rally.
Also noteworthy is that since Voyager halted trading on their platform, voyager users who hold VGX on the app can’t actually sell or take advantage of the rally. VGX is still available to buy and sell on at least a dozen other crypto platforms, however.
Voyager has corrected slightly after its initial meteoric rise but remains up 412% over the last 24 hours with an asking price of $0.78.