Crypto broker Voyager Digital issued a notice of default on Monday to hedge fund Three Arrows Capital (3AC), for failing to service a loan worth about US$665 million.
See related article: Amid 3AC exposure, Voyager Digital cuts daily withdrawal limit
- Last week, Voyager said it had asked for US$25 million worth of USD Coin (USDC) to be repaid by June 24 and the remaining amount by Monday.
- The loan consisted of US$350 million worth of USDC and 15,250 Bitcoin worth about US$315 million.
- Owing to 3AC’s exposure to the collapsed LUNA tokens, the firm is reportedly facing a severe liquidity crunch.
- 3AC failed to meet several margin calls and was liquidated by several lenders, including BlockFi and Genesis, according to a Financial Times report.
- Voyager said that it will pursue recovery and is in discussions with 3AC’s advisors about legal measures.
- As of June 22, when Voyager cut its daily withdrawal limit to US$10,000 from US$25,000, the firm said it had US$137 million in cash and cryptocurrencies.
- Voyager has used US$75 million from a line of credit provided by Alameda Research to “facilitate customer orders and withdrawals.”
- Voyager continues to operate and fulfill customer orders and withdrawals despite the liquidity pressure, a statement said.
- “We are working diligently and expeditiously to strengthen our balance sheet and pursuing options so we can continue to meet customer liquidity demands,” Stephen Ehrlich, chief executive officer at Voyager, said.
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