Crypto lender Voyager Digital said Friday it has suspended withdrawals, trading and deposits on its platform and said it is exploring strategic alternatives to preserve the value of its platform.
The move comes days after the company issued a formal notice to controversial hedge fund Three Arrows Capital (3AC) for failing to make the required loan payments.
In a statement, Voyager Chief Executive Stephen Ehrlich said the move will give the company “extra time to continue exploring strategic alternatives with various interested parties,” while preserving the platform’s value.
Voyager said in a press release that it had hired Moelis & Company and the Consello Group as financial advisors, and Kirkland & Ellis LLP as legal advisors “to support the exploration of strategic alternatives.”
On June 22, Voyager signed an agreement with Alameda Ventures Ltd for a revolving credit line, providing access to additional capital to meet its clients’ liquidity needs as crypto prices take a dent.
In a release, New Jersey-based Voyager said the value of the crypto assets it owns is $685 million, compared to the more than $1.12 billion in crypto assets it had lent.
Voyager said it had loaned $350 million and 15,250 bitcoins to 3AC. A person familiar with the matter told Reuters on Wednesday that 3AC has been liquidated.
Voyager’s move comes less than a month after rival cryptocurrency lender Celsius Network suspended withdrawals, citing extreme market conditions. Celsius has not yet opened withdrawals for its clients.
Many of the crypto industry’s recent problems can be traced back to the spectacular collapse of the so-called stablecoin TerraUSD in May, where the stablecoin lost almost all of its value along with its paired token.
Bitcoin, the largest and most well-known cryptocurrency, has fallen 58 percent in the first six months of 2022, the worst first half of the year on record.
(This story was not edited by DailyExpertNews staff and was generated automatically from a syndicated feed.)