To date, Three Arrows Capital has not paid Voyager Digital’s debt. Now, as part of its efforts to recoup the debt, the latter has filed a default notice. In keeping with its pledge, Voyager Digital is pursuing cryptocurrency hedge fund Three Arrows Capital (3AC) to recover money owed.
According to reports, the cryptocurrency broker lent 3AC $350 million in USDC stablecoin and 15,250 Bitcoin, which, at the current exchange rate, is worth more than $673 million.
Voyager stated on June 22 that it had asked for a partial $25 million USDC repayment by June 24. It continued by requesting complete repayment by today. Both of these demands appear to have gone unfulfilled, which led to this afternoon’s default notice and strengthened arguments for 3AC’s insolvency.
When a borrower has neglected to make loan payments, a lender will formally respond with a default notice. Although such a note does not guarantee that the lender will be compensated in full, it can indicate that they will soon be able to recover the initial collateral. According to statements made last week, Voyager acknowledged that, despite its desire to recoup the whole loan, the company is “unable to assess at this point the amount it will be able to recover from 3AC.”
According to today’s announcement, the firm is allegedly in discussions with its advisors “as to legal remedies available.” Su Zhu and Kyle Davies’ 3AC, which was once a darling of the booming bull market in cryptocurrencies, has been severely hurt by the most recent drop.
Several companies, including BitMEX, BlockFi, and Genesis Trading, liquidated 3AC’s outstanding loans as the bear market intensified, which was sparked by the collapse of Terra. Amid the crisis, trading company Alameda Research and cryptocurrency exchange FTX have intervened to provide bailouts to distressed firms.
Alameda has already provided Voyager with a revolving line of credit to help the company stay solvent, and the exchange anticipates investing $250 million in BlockFi.
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