Jenina Ibañez · · 2 min readCrypto broker Voyager issues default notice to 3AC as $668m in loans remain unpaid
US-based crypto broker Voyager Digital has issued a notice of default to Singapore’s Three Arrows Capital (3AC) after the hedge fund failed to make loan payments.
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With the loan amounting to 15,250 bitcoins (currently about US$318 million) and US$350 million in USD Coin (USDC), Voyager plans to pursue recovery from 3AC and is in talks with advisors on possible legal remedies.
Voyager’s shares declined by more than 60% last week after disclosing its exposure to 3AC, which suffered heavy losses after a recent crypto market selloff.
Three Arrows Capital had invested about US$200 million in Luna, which crashed along with the TerraUSD stablecoin in May. It is considering asset sales and a bailout by another company, the Wall Street Journal reported.
Voyager said it continues to operate its platform and fulfill customer orders and withdrawals, reporting on-hand cash and crypto assets of US$137 million.
The crypto broker also has access to US$200 million in cash and USDC and a 15,000 bitcoin credit line from Alameda Ventures. After drawing US$75 million from the fund, Voyager said it may continue to make use of the facility to support customer orders and withdrawals.
“We are working diligently and expeditiously to strengthen our balance sheet and pursuing options so we can continue to meet customer liquidity demands,” said Voyager CEO Stephen Ehrlich.
See also: Despite the Terrapocalypse, huge crypto staking rewards still a draw
Editing by Miguel Cordon and Lorenzo Kyle Subido
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