Voyager Digital lowers daily withdrawal limit to $10,000

  • Crypto platform Voyager Digital has lowered the daily withdrawal limit on customer accounts to $10,000 from $25,000.
  • The move comes after Voyager warned that a loan made to hedge fund Three Arrows Capital may not be repaid.
  • A subsidiary of Voyager had lent 15,250 bitcoins and $350 million of USDC stablecoin to the hedge fund.

Voyager Digital has cut the daily withdrawal limit for its clients by thousands of dollars, with the cryptocurrency trading platform taking the action after revealing it could lose more than $600 billion on a hedge fund loan.

The Canada-based company lowered the daily withdrawal limit to $10,000 from a previous level of $25,000, and the change was reflected on its website late Wednesday.

Shares of Voyager Digital on Thursday rose as much as 17% to 0.86 Canadian cents on the Toronto Stock Exchange, paring Wednesday’s 53% drop in value.

Shares slumped after the company said on Tuesday it may issue a notice of default to crypto hedge fund Three Arrows Capital for failing to repay a loan made to it by its operating subsidiary Voyager Digital LLC. Failure to pay by the struggling hedge fund left the crypto platform exposed to a potential loss of billions of dollars.

Voyager had loaned 15,250 bitcoins and $350 million of USDC stablecoin to Dubai-based Three Arrows Capital, or 3AC. Bitcoin on Thursday traded around $20,376 and, coupled with stablecoin exposure, Voyager faced a potential loss of $660 billion.

3AC missed margin calls from several lenders earlier this month, according to the Financial Times.

Voyager’s loan loss warning came at a bleak time for the broader cryptocurrency market, which is experiencing what some analysts have called a “crypto winter.” The prices of bitcoin and other digital assets have plummeted since the market valuation hit an all-time high of more than $3 trillion in November.

Voyager asked 3AC to pay the full loan balance by June 27 and requested a $25 million USDC down payment by Friday, June 24. Failure by 3AC to pay any of the requested amounts will constitute an event of default, she said.

“Voyager intends to pursue the recovery of 3AC and is in discussions with company advisors regarding available legal remedies,” the company said, adding that it “cannot assess at this time how much it will be able to recover from 3AC.” .

The crypto market was valued at $941 billion as of Thursday, according to CoinGecko. Bitcoin is down more than 50% since hitting an all-time high of $69,000 last November.

A screenshot of the Voyager Digital website shows the daily withdrawal limit at $10,000.

A screenshot of the Voyager Digital website shows the daily withdrawal limit at $10,000.

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