In a series of tweets, the cryptocurrency exchange Voyager digital claimed they are doing everything in their power to serve customers for the long-term and that they are actively pursuing a series of strategic alternatives and focused on protecting assets and maximizing value for all customers as quickly as possible.

On Friday, the crypto lender Voyager Digital Limited announced the suspension of trading, deposits, and withdrawals due to difficult market conditions amid a deepening meltdown in the troubled cryptocurrency market.

This comes days after the Three Arrows Capital Limited (3AC), the hardpressed crypto hedge fund failed to make the necessary loan payments repayments. The company was ordered into liquidation by the British Virgin Island Court and is seeking protection from creditors in the United States under Chapter 15 of the US Bankruptcy Code, which allows foreign debtors to shield US assets.

The Voyager Chief Executive Stephen Ehrlich said in a statement that, ’’the move gives the company additional time to continue exploring alternatives with various interested parties,’’ while preserving the value of the platform.

The statement further revealed the U.S. based crypto company had hired Moelis & Company, the Consello Group as financial advisors, and Kirkland & Ellis LLP as legal advisors “to support its exploration of strategic alternatives.”

On June 22nd, Voyager signed an agreement with Alameda Ventures Limited (Bankman-Fried’s trading firm), for a revolving line of credit hence gaining access to the summation of capital to meet its customer’s needs as crypto prices strike. The Bankman-Fried on his side is scrutinizing more acquisitions to solidify his outsize influence in the industry.

In another tweet, Voyager said they approximately have $1.3 billion of crypto assets plus claims against Three Arrows Capital (3AC) of more than $650million.

The move by Voyager Digital comes less than a month after a rival crypto lender, Celsius Network suspended withdrawals due to the extreme market conditions. The New Jersey-based Celsius Network froze withdrawals and transfers between accounts to ‘stabilize liquidity.’ The network has not yet re-opened withdrawals for its customers.

Last week there were rumors of Kucoin, a Seychelles based crypto trading platform was insolvent, warning that investors should exit such exchanges as their liquidity was said to be drying up. The KuCoin CEO has denied the rumors that the exchange is insolvent, and traders have been able to withdraw – but is more crypto contagion coming? That’s what some reputable crypto Twitter accounts have been warning of over the past weeks.

That is what has also been confirmed by Vauld, another crypto deposit, borrowing and lending platform which announced on Monday that it was suspending withdrawals and trading and seeks new investors, the latest sign of stress in the embattled crypto industry.

Vauld CEO, Darshan Bathija, said in a blog post that the Singapore-based crypto lending and trading platform it was facing “financial challenges” because of:

“The volatile market conditions, the financial difficulties of our key business partners inevitably affecting us, and the current market climate which has led to a significant amount of customer withdrawals in excess of $197.7 million since June 12.”

Vauld said it had appointed legal and financial advisers, was in talks with potential investors, and would also apply to the Singapore courts for a moratorium that would have any proceedings against it halted to give it time to restructure.

Voyager Digital and Crypto Markets Under Pressure

Digital asset markets have been under pressure since 2022 culminating in a crypto crash triggered by the Terra UST and LUNA debacle in May which saw the stablecoin lose almost all its value along with its paired token. Bitcoin (BTC), the largest cryptocurrency, is down 58% in the first half of 2022 making it the worst first half-year ever.