Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Crypto Platform Voyager Digital Limits Withdrawals After Getting Alameda Lifeline

Cryptocurrency Jun 24, 2022 00:40
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Geoffrey Smith 

Investing.com -- Sam Bankman-Fried's clean-up of the mess caused by the collapse of hedge fund 3 Arrows Capital continues apace.

Canadian-based crypto investment platform Voyager Digital said it will limit daily customer withdrawals, under the terms of a $200 million bailout it secured from the FTX CEO's hedge fund on Thursday.

Alameda Research, through which Bankman-Fried manages a portfolio of crypto investments, is the largest shareholder of Voyager with an 11.86% stake. On Wednesday, Voyager confirmed it had secured a revolving credit facility with Alameda for $200 million in cash and 15,000 Bitcoin (worth another $30 million at this week's prices) to backstop its customers' assets, after the collapse of 3AC left it facing massive losses. 

Voyager’s exposure to 3AC consists of 15,250 Bitcoin and $350 million USD Coin, a stablecoin pegged 1:1 to the dollar. For comparison, it has only $152 million in unrestricted cash.

Hong Kong-based 3AC said last week it has hired restructuring advisers after being badly wrongfooted by the collapse of the Terra Luna network and sharp declines in other alt-coins this year. Its collapse has exposed a string of risk management failures across other crypto lending and investment platforms, most of which have struggled to cope with redemption requests that have surged as cryptocurrency prices declined in recent weeks. 

Voyager, which boasted over 4 million unique users and some $5.8 billion in assets on its platform in its latest results, said it intends to pursue 3AC for what it's owed but "is unable to assess at this point the amount it will be able to recover."

Effective immediately, Voyager will limit daily withdrawals to the equivalent of $10,000, down from $25,000 previously. That still represents a greater degree of liquidity than that enjoyed by customers of various other crypto lending platforms, including Celsius Network, where all withdrawals have been suspended now for 11 days.

The limits reflect the constraints imposed upon Voyager under the terms of its bailout. Alameda has insisted that Voyager draw down no more than $75 million over any rolling 30-day period, and that its debt must be limited to approximately 25% of customer assets on the platform, less $500 million. It also insisted that Voyager find additional sources of funding within 12 months.

Bankman-Fried had intervened on Thursday to bail out BlockFi, another digital asset platform reportedly caught out by 3AC's collapse, also structured as a revolving credit facility of similar size to Voyager's.  

Crypto Platform Voyager Digital Limits Withdrawals After Getting Alameda Lifeline
 

Related Articles

FTX Close to BlockFi Acquisition, Reports CNBC
FTX Close to BlockFi Acquisition, Reports CNBC By Investing.com - Jul 01, 2022 1

By Sam Boughedda FTX, the cryptocurrency exchange led by Sam Bankman-Fried, is said to be close to a deal to acquire crypto lender BlockFi for "pennies on the dollar," according to...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email