Voyager digital cuts down the daily withdrawal limit by 50% to $10K from the $25K after the news of its involvement with Three Arrows Capital so let’s read more today in our cryptocurrency news.
The trading platform Voyager digital cuts down the daily withdrawal limit to $10,000 from the $25,000 after the news of the exposure to struggling hedge fund Three Arrows Capital. Voyager announced the update to the withdrawal limit a day ago as the company share prices crashed by 60%. Voyager Digital is a publicly-traded company that provides a crypto trading platform with a mobile app and debit card as well. The users are able to buy and sell over 100 different digital assets via the app.
The news however noted that it aggregated exposure of $661 million to Three Arrows Capital in the form of stablecoins and BTC. Voyager Digital lent moeny to 3AC but the company could not be able to repay the loan. Voyager said it could issue a notice of default to the hedge fund after requesting the repayment of $25 million in USDC by June 24 so as a consequence, the company could be at risk of going under despite receiving $200 million bailouts in the form of the line of credit from FTX CEO Bankman Fried.
Three Arrows Capital is a Singapore-based hedge fund that manages $10 billion in assets but it is in trouble now and at risk of going bankrupt after failing to repay loans worth hundreds of millions. Like plenty of other companies, 3AC is struggling because of the recent market crash. The price of each coin and token dropped and hit businesses that have liquditiy in the form of digital assets.
As recently reported, Voyager digital signed the deal that will see a $200 million cash/USDC-backed credit facility as well as 15,000 BTC to safeguard its customers’ assets from the bear market. The loan will be in two parts, the first part cash with an aggregate principal amount of $200 million, and the second will be in 15,000 BTC. Voyager will use the credit facilities if needed to protect the customer assets. The credit will expire on December 31, 2024, and will have an annual interest rate of 5% payable on maturity.
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