Crypto lender Voyager Digital has suspended withdrawals, trading and deposits on its platform, due to tough market conditions, amid a deep meltdown in beleaguered cryptocurrency markets, and said it is exploring strategic alternatives to preserve the value of your platform.

The move comes days after the company issued a default notice to beleaguered hedge fund Three Arrows Capital (3AC) for failing to make required payments on a loan. The company is seeking protection from creditors in the United States under Chapter 15 of the US Bankruptcy Code, which allows foreign debtors to protect US assets.

Voyager Digital said in a series of tweets that it is looking for strategic alternatives and is focused on protecting assets and maximizing value for all customers as quickly as possible. In a statement, it said release that it had hired Moelis & Company and Consello Group as financial advisors, and Kirkland & Ellis LLP as legal advisors "to support is exploration of strategic alternatives."

On June 22, Voyager signed an agreement with Alameda Ventures Ltd. to obtain a revolving credit facility, and to obtain additional capital to meet the liquidity needs of its customers as cryptocurrency prices affected.

In a statement, New Jersey-based Voyager said it has $685 million in crypto assets, compared to more than $1.12 billion in crypto assets it had loaned.

Voyager said it has lent $350 million and 15,250 bitcoins to 3AC. A person familiar with the matter told Reuters on Wednesday that the company had entered liquidation.

Voyager's move comes less than a month after cryptocurrency rival Celsius Network suspended withdrawals, citing harsh market conditions. Celsius has not yet opened withdrawals for its customers.

Bitcoin, the largest and most popular cryptocurrency, fell 58% in the first six months of 2022, showing its worst first half of the year. Cryptocurrency markets have been under pressure since May with the collapse of Terra UST and Luna collapsing. The latest casualty in the crypto crash will be Three Arrow Capital (3AC), whose collapse dampened confidence in crypto markets.

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