Voyager Digital suspends withdrawals, deposits

Voyager Digital, a cryptocurrency lender, announced on Friday that it has halted withdrawals, trading, and deposits to its platform and that it is looking into other financing options to protect the value of its system.

The action was taken a short time after the company sent a default notice on troubled hedge fund Three Arrows Capital (3AC) for failing to make loan payments as needed.

In a press release, Voyager stated that it had appointed Moelis & Company (MC.N), the Consello Group, and Kirkland & Ellis LLP as financial and legal advisors, respectively, "to support its exploration of strategic alternatives."

​The crypto assets that New Jersey-based Voyager has are worth $685 million, according to a release, as opposed to the more than $1.12 billion in crypto assets that it had lent.

Voyager claimed to have given 3AC a $350 million loan along with 15,250 bitcoins. On June 22, Voyager and Alameda Ventures Ltd.

Signed a contract for a revolving line of credit, giving Voyager access to more money to meet its customers' liquidity needs if cryptocurrency prices fall. Voyager's action comes less than a month after rival cryptocurrency lender Celsius Network halted withdrawals due to the same 3AC issue.

​BlockFi, a company that specializes in lending to the cryptocurrency industry, is a rival of Voyager and has also recently experienced a shortage of liquidity. BlockFi will soon be acquired by FTX thanks to a $680 million financing agreement.