Voyager Digital CEO Stephen Ehrlich
US-based cryptocurrency broker Voyager Digital has issued a notice of default to Three Arrows Capital (3AC) after the Singaporean hedge fund failed to make a loan repayment.
A statement said that 3AC owes about 15,250 BTC (US$318 million) and US$350 million USDC.
Voyager intends to pursue recovery from 3AC and is in talks with its advisors for legal remedies.
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“We are working diligently and expeditiously to strengthen our balance sheet and pursuing options so we can continue to meet customer liquidity demands,” said CEO Stephen Ehrlich.
3AC had invested about US$200 million in TerraUSD (UST) and its sister currency Luna in May. The UST stablecoin — pegged against the US dollar — was trading at US$80 a coin, but it tanked to 35 cents following a massive sell-off. Luna also dropped and became almost worthless.
A few days ago, Hong Kong-based 8 Blocks Capital accused 3AC of swindling US$1 million, adding that 3AC used the money to repay lenders and counterparties after the latter allegedly underwent over US$400 million in liquidation.
Voyager Digital’s subsidiary, Voyager Digital, LLC, is a cryptocurrency platform in the US founded in 2018. The firm offers a secure way to trade over 100 different crypto assets using its easy-to-use mobile app. Through its subsidiary Coinify ApS, Voyager provides crypto payment solutions for both consumers and merchants around the globe.
As of June 24, 2022, Voyager claims it had approximately US$137 million cash and owned crypto assets on hand. The company also has access to the previously announced US$200 million cash and USDC revolver and a 15,000 BTC revolver from Alameda Ventures.
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Voyager Digital has accessed US$75 million of the line of credit made available by Alameda. It may continue to make use of the Alameda facilities to facilitate customer orders and withdrawals, as needed.
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