The decentralized, cross-chain liquidity protocol Thorchain paused its savers and lending programs Thursday, preventing ThorFi users from being able to withdraw Bitcoin, Ethereum, and other crypto assets from the embattled services.

Roughly $111 million worth of digital assets has been borrowed through Thorchain’s protocol, and $98 million worth of crypto is currently locked in savers vaults. That amount from depositors includes $57 million worth of Bitcoin and $16 million worth of Ethereum, per a Thorchain dashboard.

The problem is anyone who currently has money in ThorFi can’t get it out, as the network faces a $200 million insolvency. Thorchain network operators have frozen these funds in an attempt to prevent a disaster scenario for the DeFi protocol. Dragonfly Capital managing partner likened the move to a “bankruptcy freeze,” calling it the “first on-chain restructuring.”

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Author: André Beganski