On Friday, Voyager Digital announced that it was suspending its deposits, trading, and withdrawals on its platform. The crypto lender further added that it was exploring some strategic options in order to preserve its platform’s value in yet another sign of trouble for companies in the decentralized finance (DeFi) and crypto world.

Trouble is building

This moves from the crypto lending platform comes only days after it had issued a default notice to Three Arrows Capital (3AC), as the embattled hedge fund had not made payments on a loan it had taken. The fund has, since then, filed for bankruptcy, which means Voyager is in for a massive loss of more than $600 million.

Stephen Ehrlich, the chief executive of Voyager Digital said in a statement that this move provides the platform with some time to check out some strategic alternatives and also maintain its value simultaneously. In a release, the company disclosed that it had availed the services of the Consello Group and Moelis & Company as financial advisors.

It had also hired legal advisors Kirkland & Ellis LLP to assist in exploring some alternatives where strategy is concerned.

Deal with Alameda

Voyager Digital obtained a revolving line of credit from Alameda Ltd. on June 22nd when it entered into an agreement with it. This provided the lending platform with access to additional capital that could be used for meeting the liquidity needs of its clientele, as the value of crypto assets have taken plunged sharply.

The New Jersey based company said in a release that the total value of crypto assets it has in its holdings so far is valued at $685 million. As far as the crypto assets it has loaned are concerned, those are valued at a whopping $1.12 billion.

The lending platform had loaned 15,250 bitcoins and $350 million in the USDC stablecoin to Three Arrows Capital (3AC), funds that it is not likely to get back as the company has already begun the liquidation process.

Turmoil in the market

It was less than a month ago that another lending protocol, Celsius Network had made a similar announcement. The platform had also paused withdrawals in light of the extreme market conditions. It should be noted that the company has not opened up withdrawals again for its customers. In fact, other platforms in the decentralized finance (DeFi) ecosystem, such as Babel Finance, have also made similar moves and now Voyager has joined the list.

While the crypto space had been facing some volatility since the beginning of the year, the market really went into turmoil with the collapse of the TerraUSD (UST) stablecoin and its sister token LUNA, which plunged to zero. The implosion wiped out about $60 billion from the crypto market and companies that were exposed to the stablecoin and token, including Celsius Network, have been facing trouble since then.

Bitcoin, the leading cryptocurrency in the market has come down more than 70% from its all-time high value and has lost more than 58% in this year alone.