Voyager Digital Exchange's daily withdrawal limit drops to $10,000

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The cryptocurrency industry seems to be experiencing more turmoil every day. With Three Arrows Capital (3AC) entering the fray, the problems seem to be growing.
The latest update on Voyage Digital Ltd’s website shows that its daily withdrawal limit has been reduced from $25,000 to $10,000. This happened after Voyage revealed it to troubled hedge fund Three Arrows Capital last week.
Voyager’s exposure to Three Arrows Capital
Voyager’s stock price fell more than $60% after the company disclosed its exposure to troubled Three Arrows Capital last Wednesday. In total, Voyager had exposure to Three Arrows Capital of $350 million in USD Coin (USDC) and 15,250 bitcoins, or nearly $310 million.
The announcement comes after the company said last Wednesday that its subsidiary could notify Three Arrows Capital Ltd of a default if the bitcoin hedge fund failed to repay its debts.
According to the statement, Voyager is also considering legal options to obtain funding from the hedge fund. Earlier this month, Voyager entered into a revolving credit agreement with Alameda Ventures Ltd. to obtain additional funds to support its customers’ liquidity needs as cryptocurrency prices fall.
Following the announcement, Voyager’s native token VGX fell by 6.8%. The token could follow the same trend as CEL, which experienced a sharp drop after Celsius Network stopped accepting withdrawals. Despite VGX’s drop, the market capitalization of all cryptocurrencies grew by 3% over the past day.
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The Problem with Three Arrows Capital
Three Arrows Capital, also known as 3AC, a Singapore-based cryptocurrency hedge fund with an estimated $10 billion in assets under management, is in trouble and is facing bankruptcy after failing to repay hundreds of millions of dollars in loans, according to officials at the companies that owe it money.
The cryptocurrency crisis has caused Three Arrows Capital, as well as several other companies in the industry, to fall into trouble. The price of each cryptocurrency has fallen sharply, negatively affecting companies that own digital assets.
Background on Voyager Digital
Voyager Digital, LLC, the U.S. subsidiary of Voyager Digital Ltd, is a cryptocurrency trading platform that aims to bring competitiveness, openness, and cost-efficiency to the market. Through its user-friendly smartphone application, Voyager aims to provide a secure way to trade over 100 different cryptocurrency assets.
Voyager provides cryptocurrency payment options to customers and merchants around the world through its subsidiary Coinify ApS. The company needs liquidity to pay out the earnings generated by consumers who place their funds on the platform.
Amid the pessimism, Voyager is working to gain stability. Alameda Research, owned by Sam Bankman-Fried, the CEO of FTX, has been helping struggling cryptocurrency companies, agreed to provide the exchange with a $200 million loan.
Following the outbreak, the company has joined the ranks of leading cryptocurrency firms that have halted withdrawals due to the ongoing bear market. This month alone, a number of companies have announced suspensions of operations, citing tough market conditions, including Babel Finance, Celsius Network, and Finblox.
Current statistics for Voyager Token price (VGX)
According to CoinMarketCap, VGX has a current market cap of $100.5 million and a 24-hour trading volume of $14.4 million. The price of VGX has fallen by 27.8% in the past seven days and 11% in the past seven hours. The current market price is $0.362 per VGX, and the current circulating supply is 278.4 million VGX.
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