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.
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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.
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