Cryptocurrency lender Voyager Digital has suspended withdrawals, trading and deposits on its platform due to tough market conditions, amid a deep downturn in troubled cryptocurrency markets, and said it is exploring strategic options to preserve the value of its platform. Used to be.
The move comes days after the company issued a default notice to the troubled hedge fund. three arrow capital (3AC) for failure of the Fund to make the required payments on the loan. The company is seeking protection from creditors in the United States under Chapter 15 of the U.S. Bankruptcy Code, which allows foreign debtors to protect U.S. assets.
Voyager Digital said in a series of tweets that it is pursuing strategic options and is focused on protecting assets and maximizing value as quickly as possible for all customers. It said in a release that it had hired Moelis & Company and Conselo Group as financial advisors, and Kirkland & Ellis LLP as legal advisors “is exploring strategic options to support.”
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 take 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 3AC $350 million and 15,250 bitcoins. 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.
Bitcoin, the largest and most well-known cryptocurrency, is down 58% in the first six months of 2022, marking the worst first half ever. crypto The market has been under pressure since May due to the collapse of Terra Token UST and Luna. The latest casualty in the crypto crash would be Three Arrows Capital (3AC), whose collapse eroded confidence in the crypto markets.