Voyager Digital issues notice of default to 3AC

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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

Fast facts

  • 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.
  • 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.

See relat­ed arti­cle: SEC scru­ti­niz­ing cryp­to lend­ing by Cel­sius, Gem­i­ni, Voy­ager: reports

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