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Voyager Digital reduces withdrawal limits to $10,000 amid 3AC exposure risk

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Voyager Digital recently announced a $200 million loan from Alameda Ventures amid the release of a $612 million investment in Three Arrows Capital. Shares of Voyager digital fell 60% on news of the bailout.

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Users are now reporting that the platform’s withdrawal limit has been lowered to $10,000 per day. previous withdrawal limit was $25,000, according to a support article on his website. The move is likely to be part of an effort to mitigate the risks of a liquidity crunch amid turbulent market conditions and its exposure to 3AC risk.

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3AC was suffering from an insolvency crisis and was unable to pay Voyager’s $25 million default notice that was due by June 24. Failure to pay just 4% of his debt does not bode well for his ability to repay the entire $612 million. A report filed by Voyager Digital on May 16, 2022 states:

“The Company limits such credit risk by making loans to borrowers that the Company, based on its due diligence, believes to be high quality financial institutions with sufficient capital to meet their obligations as they fall due.”

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According to his recent earnings, Voyager posted a $61.5 million loss in the first quarter of 2022. As of May 2022, Voyager had $3.4 billion in cryptocurrency assets and had $2.4 billion in loans. It also holds $5.4 billion worth of client crypto assets in custody. With net assets of $1 billion, Voyager can handle a loss of around $20 million per month. However, the bank’s withdrawal of its depository assets may cause serious concerns for the stock exchange.

Among worried investors, one user who raised the withdrawal limit to $125,000 was denied a withdrawal of $90,000, while others report that their limits have dropped to $10,000 per day. Several other users on Twitter confirmed that their limits were also reduced to $10,000 per day.





Credit : cryptoslate.com

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