Crypto broker Voyager Digital Ltd has lowered its daily withdrawal limits to $10,000 from $25,000, according to an update on the company’s website.
The change comes after the company on Wednesday said its subsidiary may issue a default notice to Three Arrows Capital Ltd if the cryptocurrency hedge fund fails to repay its loan.
Voyager did not immediately respond to a request for comment.
Voyager’s total exposure to Three Arrows Capital consists of 15,250 bitcoin (nearly $310 million) and $350 million USD Coin (USDC), it said.
The New Jersey-based company said it had initially asked for repayment of $25 million USDC by June 24, and later requested that the entire amount be repaid by June 27. However, neither of those have been repaid, Voyager said.
Voyager is also discussing legal remedies available to recover the amount from the hedge fund, it said. Earlier this month, Voyager signed an agreement with Alameda Ventures Ltd for a revolving line of credit, seeking access to additional capital to meet its customers’ liquidity needs as crypto prices take a hit.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.