Voyager Digital Limits Daily Withdrawal limit to $10,000 Amid 3AC Crisis

Prominent cryptocurrency exchange, Voyager Digital, reduced its daily withdrawal limit from $25,000 to $10,000 and limited the daily number of withdrawals to 20, according to their website, after previously releasing a statement detailing exposure to Three Arrows Capital (3AC), a hedge fund experiencing insolvency issues. 

The update took place via Voyager Digital’s website at 11:00 p.m. UTC, or 7:00 p.m. ET. 

This withdrawal limit comes not even a day after suggesting they would issue 3AC a notice of default for failure to repay its loan. Voyager Digital requested a repayment of $25 million USDC by June 24, 2022, with the remaining amount due by June 27. At the time of their press release, neither of these payments have been made, which will constitute an event of default. 

Voyager is exposed to 3AC in the form of $311 million worth of Bitcoin and $350 million of USDC. Unfortunately for Voyager, they could not assess how much crypto they would be able to recover from 3AC. 

As a result of the announcement, their stock (VOYG) plummeted by 60% on Wednesday after they detailed their exposure to 3AC. However, despite the withdrawal limit announcement, VOYG has made up some ground on Thursday, now being traded at $0.81, good for a 6.58% increase. 

Of course, that puts VOYG significantly down on their price in the last 48 hours at about 53%. 

Voyager appears to be the latest in a series of crypto companies hit by the recent market downturn and 3AC’s insolvency. Lending platform, Celsius Network, has halted withdrawals, Swap and transfers between accounts on their network, citing “extreme market conditions” without providing an end date. 

Reports surfaced last week that 3AC was facing insolvency issues after incurring a $400 million in liquidations from crypto lending platforms. Since then, FTX, Deribit and BitMEX have all came out and said they liquidated from 3AC, while BlockFi and Genesis trading released similar statements, but chose not to name who they liquidated from. 

3AC admitted their demise was related to the Terra Network’s collapse, which saw both of their cryptocurrencies, LUNA and UST, drop more than 99% in the course of a week. 

While Voyager took to Twitter yesterday to publicize their exposure to 3AC, they have remained mute about this most recent event, only choosing to post it on their website and not Twitter. 

Author: Tyler Irvin

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