Three Arrows Capital (3AC) has received a notice of default from Voyager Digital for failing to make payments on BTC and USDC loans.
Hedge fund Three Arrows Capital (3AC) has been issued a notice of default from cryptocurrency exchange Voyager Digital for failing to make payments on a loan for 350 million USD Coin (USDC) and 15,250 Bitcoin (BTC) that was previously revealed.
The exchange stated that it is currently discussing “legal remedies” with its counsel and intends to pursue the recovery of its funds from 3AC in a market update by Voyager.
Voyager also revealed that as of June 24, 2022, the company has $137 million in cash and cryptocurrency. Additionally, the business reassured users that the platform will continue to run and process their orders and withdrawal requests.
In addition to this, the business also hired Moelis & Company as its financial consultant to support its efforts to stabilize despite its exposure to 3AC. Stephen Ehrlich, chief executive officer of Voyager, said that the team is presently trying to strengthen its balance sheets and exploring additional solutions to keep up with the liquidity requirements of its users.
Voyager states that thanks to its loan deal with trading Alameda Research, it has access to the $500 million in money. The company reported that it now has access to $75 million in money from Alameda.
Voyager gave 3AC deadlines last week for paying back its BTC and USDC loans. The company asked for $25 million to be paid last Friday as well as the whole amount to be paid today. However, despite the time constraints, 3AC was unable to abide by them.
The share price of Voyager fell by 60% on June 22 when cryptocurrency equities took a dive. The following day, Voyager apparently reduced their withdrawal amount due to current problems with 3AC to $10,000.