Voyager Digital revealed a notice of default to troubled crypto fund Three Arrows Capital (3AC) over loan debt.
Failing insolvent cryptocurrency hedge fund Three Arrows Capital has received a notice of default for failing to repay loans registered at more than $650 million.
According to a statement made on Monday, cryptocurrency platform Voyager Digital, which brings up to 12% returns, highlighted the breach notice. According to the report, Voyager filed the notice to Three Arrows Capital, better known as 3AC, for a debt of 15,250 bitcoins and $350 million on USDC.
The equipped crypto fund has apparently failed to make the required repayment of its loans to the network. Voyager highlighted that despite these drawbacks, it keeps carrying out its operations and fulfilling customer orders and withdrawals.
The company also revealed that it had accessed $75 million from a credit facility provided by Alameda Ventures, with the possibility of drawing further on these resources as required. Voyager said it has $137 million in cash and digital assets under control.
Voyager CEO Stephen Ehrlich said in the statement that they are working hard to strengthen their balance sheet and seeking options to meet customer demands for liquidity.
Voyager Harmed by 3AC
The news comes as Three Arrows Capital faces insolvency difficulties due to multi-million dollar liquidations; The reputable Singapore-based fund liquidated its positions this month after failing to honor margin calls.
The fund’s co-founders, Su Zhu and Kyle Davies said in an interview with the Wall Street Journal that the firm was going through considerable losses after the crash of Terra and the recent broader slump in the digital currency market. 3AC had invested more than $200 million in LUNA, the Terra token that went down to zero in May.
Davies explained to the Wall Street Journal that the company expects to arrange an agreement with creditors that will give it more time to appear with a new strategy.
Voyager Digital highlighted last week that it was lowering the limits allowed for its daily withdrawals from $25,000 to $10,000, with a maximum of 20 extractions, after saying it had exposure to 3AC. The company’s share price fell more than 60% after highlighting the exposure to the crypto fund and revealing the decision, as reported by CoinDesk.
Toronto, the Canada-based Voyager, explained in its statement today that it hired investment banker Moelis & Company as a financial advisor to manage the current situation.
By: Jenson Nuñez
