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Voyager Digital suffers the same fate as Celsius and freezes customer funds

The company has announced that it is exploring alternatives to save the situation

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The company has announced that it is exploring alternatives to save the situation

Cryptocurrency lending platform Voyager Digital has suspended withdrawals, trading and deposits on its platform, due to difficult market conditions, amid a widening collapse in the beleaguered crypto asset market. Through a series of communications on Twitter, the company has announced that it is exploring alternatives to save the situation.

The company has advised that it is seeking strategic alternatives and is focused on protecting assets and maximizing value for all clients as quickly as possible . It said in a statement that it had engaged Moelis & Company and Grupo Consello as financial advisers, and Kirkland & Ellis LLP as legal advisers “to support the exploration of strategic alternatives.”

On June 22, Voyager signed an agreement with Alameda Ventures Ltd for a revolving credit facility , gaining access to additional capital to meet its clients’ liquidity needs as cryptocurrency prices take a hit.

In a statement, New Jersey-based Voyager said the value of the crypto assets it owns is $685 million , compared to more than $1.12 billion worth of crypto assets it had lent.

The move comes days after the company issued a notice of default 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 their assets in the United States.

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