Digital Assets: Contagion? Voyager Digital Slashes Withdrawal Limits From $25K To $10K

June 24, 2022 | Digital Assets, Latest News, News
https://dailyalts.com/wp-content/uploads/2022/06/Voyager-Digital-chart.jpg

TSX Listed crypto broker Voyager Digital is facing a default of $660 million from crypto hedge fund Three Arrows Capital.

Voyager Digital (TSE: VOYG) is reeling from the potential $660 million default on its exposure to crypto hedge fund Three Arrows Capital Ltd comprising 15,250 Bitcoin and $350 million of stablecoin USDC. In a move likely to further dampen the already battered sentiment in the crypto market, the company announced Thursday it was lowering its daily withdrawal limits to $10,000 from $25,000. (Reuters)

It also revealed Wednesday that it may have to issue a default notice to Three Arrows for failure to repay its loan. Shares fell 51% in Toronto trading after the notice became public.

Liquidity lifelines

Voyager’s move to curtail withdrawals comes even though it managed to secure credit lines of $200 million in cash and USDC stablecoin plus another 15,000 bitcoin from the investment arm of Sam Bankman-Fried owned Alameda Research LLC.

It appears that liquidity pressures are threatening to swamp these loan lifelines to the crypto broker, even though it reported $5.8 billion of platform assets in March.

According to analysts cited by Bloomberg, the company’s survival would hinge on the pace of the withdrawals demanded by its panicked customers, and the extent of recovery from Three Arrows.

“Voyager intends to pursue recovery from 3AC and is in discussions with the Company’s advisors regarding the legal remedies available,” Voyager said. “The Company is unable to assess at this point the amount it will be able to recover from 3AC.”

Related Story: Celsius Bars Withdrawals; Cryptos Melt; Bitcoin Crashes

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2022/08/logo-ripple.jpg
Digital Assets: Ripple Labs Eyeing Pieces Of Celsius In Bankruptcy Wreckage
August 10, 2022     Digital Assets, News

Ripple Labs, the blockchain payments company that created the XRP cryptocurrency, is interested in purchasing assets of Celsius Network, the crypto lender that was forced into bankruptcy amidst the meltdown…

https://dailyalts.com/wp-content/uploads/2022/08/Nuri.png
FinTech: German Bank Nuri Files For Insolvency Amidst Macro Environment And Crypto Bear Market
August 10, 2022     Digital Assets, FinTech, News

Nuri, a digital banking platform and app, offered users crypto transactions as well as normal banking activities including a debit card. The firm announced it had filed for insolvency on…

https://dailyalts.com/wp-content/uploads/2022/08/TX-SCARA_Press_1-1-1-1030x644-1.jpg
Artificial Intelligence: AI Robot TX SCARA To Debut In 300 FamilyMart Stores In Japan
August 10, 2022     Artificial Intelligence, Latest News, News

Telexistence Inc., the Japanese robotics company, announced the launch of its TX SCARA restocking robots in 300 FamilyMart convenience stores in Japan later this month as part of its AI-based…

https://dailyalts.com/wp-content/uploads/2022/08/Coinbase-Mobile-–-Splash.png
Alternative Investments/Digital: GraniteShares Launches The First Coinbase Leveraged ETF
August 10, 2022     Alternative Investments, News

US ETF issuer GraniteShares, which first launched leveraged ETFs on single stocks in the UK in 2019, and now offers 106 such products across Europe, has listed a suite of…