Vauld, a Singapore-based cryptocurrency lending and exchange player, has suspended withdrawals, trading and deposits as it faces up to "financial challenges".
The firm says “volatile market conditions” have led to customers withdrawing more than $197.7 million from the platform since 12 June, leaving it in trouble.
It has brought in financial and legal advisors as it looks into its options, including a potential restructuring, to "best protect the interests of Vauld's stakeholders".
Vauld - which counts Valar Ventures, Coinbase Ventures and Pantera Capital among its backers - says it is "in discussions with potential investors".
The decision to suspend withdrawals comes just three weeks after Vauld said it was processing withdrawals "as usual and this will continue to be the case in the future".
Last month, crypto lender Celsius paused withdrawals thanks to “extreme market conditions.”