Voyager LLC declares default by Three Arrows Capital

In a statement, the company explained that 3AC potentially defaulted on a $655 million loan.

Crypto exchange Voyager Digital issued a notice of default to the hedge fund Three Arrows Capital for failure to make the required payments on its previously disclosed loan of 15,250 BTC and $350 million USDC. 

Yesterday, Voyager announced that intends to pursue recovery from Three Arrows Capital and, for that, has engaged Moelis & Company as financial advisors to discuss with 3AC’s advisors as to legal remedies available.   

As of June 24, 2022, the platform disclosed that it have sufficient liquidity to cover the non-repayment with approximately US$137 million cash and owned crypto assets on hand. It also specified that continue to operate and fulfill customer orders and withdrawals regularly. In recent months, Voyager has accessed US$75 million from a line of credit made available by Alameda Ventures Ltd. "We are working diligently and expeditiously to strengthen our balance sheet and pursuing options so we can continue to meet customer liquidity demands," said Stephen Ehrlich, Chief Executive Officer of Voyager.

Last week, Voyager gave 3AC deadlines for the repayment of its BTC and USDC loans. The hedge fund founded in 2012 by Su Zhu and Kyle Davies has already shown signs of great difficulty in the past weeks, due to unfavorable market conditions that have led to over 40 million dollars losses since the beginning of the year.