Digital Assets: Three Arrows Capital Served Default Notice, Says Voyager Digital

June 27, 2022 | Digital Assets, Latest News, News

Three Arrows Capital has allegedly failed to make required payments on its loans from Voyager

Voyager Digital (TSE: VOYG) announced today that its operating subsidiary, Voyager Digital LLC, had issued a notice of default to Three Arrows Capital for failure to make the required payments on its loan of 15,250 BTC and $350 million USDC. (Voyager)

Three Arrows Capital has run into liquidity issues after the relentless decline in the crypto market and the collapse of stablecoin TerraUSD/Luna. It has reportedly also been facing margin calls. The hedge fund had a deadline today to repay over $670 million in loans.

The crypto market has already been reeling from withdrawal suspensions at Celsius Network, job cuts, and a hugely negative macroeconomic environment including rate hikes and record inflation.

A default at Three Arrows Capital (3AC) could have a further ripple (contagion?) effect because of the fund’s huge leveraged positions and prominence in the crypto market.

“Voyager intends to pursue recovery from 3AC and is in discussions with the Company’s advisors as to legal remedies available,” the company said.

To tide over the crisis, the company has arranged a line of credit in the form of a US$200 million cash and USDC revolver and a 15,000 BTC revolver from Alameda Ventures Ltd, an affiliate of Sam Bankman-Fried.

It said it had approximately US$137 million cash and owned crypto assets on hand as of June 24, 2022.

“The Company has accessed US$75 million of the line of credit made available by Alameda and may continue to make use of the Alameda facilities to facilitate customer orders and withdrawals, as needed,” Voyager said. “The default of 3AC does not cause a default in the agreement with Alameda.”

Related Story: Contagion? Voyager Digital Slashes Withdrawal Limits From $25K To $10K

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Digital Assets: 1% Of Chileans Sign Up For Worldcoin; Rush Seen In Argentina, Too
September 28, 2023     Digital Assets, News

Worldcoin, the innovative biometric wallet and ID project, is making significant waves in Chile as it surpasses a remarkable milestone. The organization has reported that over 200,000 Chileans have embraced…
FinTech: Atom Bank And Kamma To Partner For Greening UK Mortgage Assets
September 28, 2023     ESG and Sustainability, FinTech, News, Real Estate

Atom bank and Kamma have formed a significant partnership aimed at addressing the pressing concerns of climate change. This collaboration brings together Atom bank’s cutting-edge banking technology with Kamma’s climate…
Venture Capital: Slope, A B2B Solutions Provider Backed By Sam Altman, Scores $30M Funding

Slope, a two-year-old AI startup based in San Francisco, has secured a substantial $30 million equity round led by Union Square Ventures and featuring participation from OpenAI’s CEO, Sam Altman….
Artificial Intelligence: Palantir Awarded $250M Contract By US Department Of Defense For AI R&D
September 28, 2023     Artificial Intelligence, Latest News, News

Palantir Technologies Inc. (NYSE: PLTR) has secured a significant contract worth $250 million with the US Defense Department. The primary focus of this contract is the research and development of…