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 the beleaguered hedge fund Three Arrows Capital (3AC) For failure of the Fund to make the 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 as legal advisors “to support the exploration of strategic options.”
On June 22, Voyager signed an agreement with Alameda Ventures for a revolving line of credit, providing access to additional capital to meet the liquidity needs of its clients. crypto Prices take a hit.
In a release, New Jersey-based Voyager said that the crypto assets are valued at $685 million (approximately Rs 5,408 crore), compared to over $1.12 billion (about Rs 8,842 crore) in crypto assets it was loaned to.
Voyager said that it earned $350 million (about Rs 2,763 crore) and 15,250 . lent to bitcoins Up 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.
© Thomson Reuters 2022