Crypto lender Voyager Digital suspends withdrawals and deposits


 Voyager Digital Ltd. CEO and co-founder Stephen Ehrlich speaks at the Piper Sandler Global Exchange and Fintech Conference on June 8, 2022 in New York City, U.S. REUTERS/Brendan McDermid.


July 1 (Reuters) - Crypto lender Voyager Digital announced on Friday that it has suspended withdrawals, transactions and deposits on its platform and is exploring strategic alternatives to preserve the value of its platform.


The move comes just days after the company gave a formal notice to troubled hedge fund Three Arrows Capital (3AC) for failing to make loan payments as required.


Voyager CEO Stephen Ehrlich said in a statement that the move gives the company \"more time to continue exploring strategic alternatives with various stakeholders\" while maintaining the value of the platform.


Voyager said in a release that it has retained Moelis & Company (MC.N) and Consello Group as financial advisors and Kirkland & Ellis LLP as legal counsel \"to assist in the exploration of strategic alternatives.\"


On June 22, Voyager signed a revolving line of credit agreement with Alameda Ventures Ltd to access more funds to meet the liquidity needs of its clients as cryptocurrency prices plummet.


In a press release, New Jersey-based Voyager said it held crypto assets worth $685 million, while it lent crypto assets worth more than $1.12 billion.


Voyager said it borrowed $350 million and 15,250 bitcoins from 3AC. 3AC has entered a liquidation phase, a person familiar with the matter told Reuters on Wednesday.


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 withdrawals for its customers.


Much of the crypto industry's recent troubles can be traced back to the stunning collapse of the so-called stablecoin TerraUSD in May, when the stablecoin and its counterpart tokens lost nearly all of their value.


Bitcoin, the largest and best-known cryptocurrency, fell 58% in the first six months of 2022, its worst first half on record.


💌 Resources and References:

Reuters

Crypto lender Voyager Digital relies on withdrawals, deposits...


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