Voyager Digital is the latest cryptocurrency platform to impose withdrawal restrictions on its customers. The crypto trader announced on Tuesday that it would cap daily withdrawals at $10,000 compared to the previous $25,000. The customers also can make a total of 20 withdrawals in a 24-hour period.
The news comes after Voyager Digital revealed an exposure of around $650 million in crypto to struggling Singapore-based cryptocurrency hedge fund Three Arrows Capital (3AC). Voyager gave 3AC a loan of $350 million in stablecoin USDC as well as 15,250 bitcoin units. However, the company is unsure if and when the debt is going to be paid.
The news caused Voyager Digital’s stock to take another big hit after recently declining in value due to the crashing crypto market. It lost around 60 percent during trading hours on Wednesday and went from $1.23 to $0.46 per share. This represents a huge drop-off from its $16.54 peak in November 2021.
While Voyager decided to set limits on the withdrawals their customers make, some other crypto traders have frozen withdrawals altogether. The most notable example is Celsius Network, which made this decision on June 13th, locking its 500,000 customers out of their funds. The company said it made the decision due to “extreme market conditions,” and there is no indication when the withdrawals might be possible again.