Amid 3AC exposure, Voyager Digital cuts daily withdrawal limit

A day after Voyager Digital disclosed its exposure to crypto hedge fund Three Arrows Capital (3AC), it slashed daily withdrawal limits to US$10,000 from US$25,000.

See related article: Sam Bankman-Fried steps in to bail out BlockFi

Fast facts

• On Wednesday, crypto trading platform Voyager said it had loaned over US$650 million worth of USDC and Bitcoin to 3AC which the latter might be unable to pay back.

• Voyager said it would issue a notice of default if 3AC fails to repay US$25 million worth of USDC by Friday and the rest of the loan by June 27.

• Although Voyager said it will pursue recovery of the funds, it is yet to determine how much of the money can be recovered from 3AC.

• 3AC stands the risk of going bankrupt after failing to pay back several large loans in the past few weeks.

• Voyager itself is not yet out of the woods despite the US$500 million revolving credit facility from Alameda Research, founded by FTX CEO Sam Bankman-Fried.

• Voyager’s share price has dropped by around 55% since news of its exposure to 3AC was made public.

See related article: SEC scrutinizing crypto lending by Celsius, Gemini, Voyager: reports