Crypto broker Voyager digital announced on its website Wednesday that it would drop daily withdrawal limits from $25,000 to $10,000.
The policy change was announced as the firm seeks to shore up its finances following a sharp decline of the company’s share price—dropping by as much as 60% throughout the day and closing at a 50.84% loss.
The price collapse came after Voyager publicly revealed loans it made to crypto hedge fund Three Arrows Capital (3AC). According to Voyager, there are over $650 million in outstanding loans—made up of 15,250 BTC and $350 million USD Coin (USDC).
Alameda Research, a quantitative trading firm owned by FTX founder Sam Bankman Fried, announced on Monday that it would be extending a $500 million loan to support Voyager’s losses from 3AC. The deal will consist of a $200 million line of credit made up of cash and USDC stablecoins, as well as a 15,000 BTC revolving line of credit, worth roughly $300 million at the current market price.
Voyager announced that intends to recover the funds from 3AC and is now in talks with its advisors “regarding the legal remedies available.”
The firm has sent a request for payment to 3AC, which specifies that $25 million be paid by Friday and the total balance be paid on Monday. If 3AC does not comply with these requests, Voyager says it will consider it an event of default.
© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.