Voyager app lowers daily withdrawal limits - crisis continues

Voyager app lowers daily withdrawal limits - crisis continues

Voyager app lowers daily withdrawal limits - crisis continues

Crypto broker Voyager Digital Ltd has lowered its daily withdrawal limits to $10,000 from $25,000, according to an update on the company's website.

The change comes after the company on Wednesday said its subsidiary may issue a default notice to Three Arrows Capital Ltd if the cryptocurrency hedge fund fails to repay its loan.

Voyager did not immediately respond to a request for comment.

Voyager's total exposure to Three Arrows Capital consists of 15,250 bitcoin (nearly $310 million) and $350 million USD Coin (USDC), it said.

The New Jersey-based company said it had initially asked for repayment of $25 million USDC by June 24, and later requested that the entire amount be repaid by June 27. However, neither of those have been repaid, Voyager said.

Voyager is also discussing legal remedies available to recover the amount from the hedge fund, it said.

Earlier this month, Voyager signed an agreement with Alameda Ventures Ltd for a revolving line of credit, seeking access to additional capital to meet its customers' liquidity needs as crypto prices take a hit.

The liquidity crisis in crypto has highlighted the importance of self-custodial crypto wallets.

(Reporting by Hannah Lang in Washington; Editing by Mark Porter, Bernadette Baum and Samuel Sherwood)

This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.

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