Crypto lender Voyager Digital on Friday said it has suspended withdrawals, trading and deposits on its platform and said it is exploring strategic options to preserve the value of its platform.
The move comes days after the company issued a default notice to hedge fund Three Arrows Capital (3AC) for the fund’s failure to make required payments on the loan.
In a statement, Voyager CEO Stefan Ehrlich said the move gives the company “extra time to continue exploring strategic options with various interested parties” while preserving the value of the platform.
Voyager said in a release that it had hired Moelis & Company and Conselo Group as financial advisors and Kirkland & Ellis LLP as legal advisors “to support the exploration of strategic options.”
On June 22, Voyager signed an agreement with Alameda Ventures Ltd for a revolving line of credit, providing access to additional capital to meet the liquidity needs of its clients as crypto prices took a hit.
New Jersey-based Voyager said in a release that the crypto assets it held are valued at $685 million, compared to more than $1.12 billion in cryptocurrency assets it lent.
Voyager said it lent $350 million and 15,250 bitcoins to 3AC. A person familiar with the matter told Reuters on Wednesday that 3AC has entered liquidation.
Voyager’s move comes less than a month after rival crypto lender Celsius Network suspended withdrawals, citing extreme market conditions. Celsius has not yet opened withdrawal backup for its customers.
Many of the recent problems facing the crypto industry can be traced back to the spectacular collapse of the so-called stablecoin TeraUSD in May, which saw the stablecoin lose almost all of its value along with its paired tokens.
Bitcoin, the largest and best-known cryptocurrency, is down 58 percent in the first six months of 2022, marking the worst first half ever.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)