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Voyager digital issued a default notice against Three Arrows Capital as the company has yet to repay its debt so let’s read more today in our latest cryptocurrency news.
Voyager Digital is making good on the promises to chase down crypto hedge fund Three Arrows Capital for owed money and the broker reportedly lent Three Arrows Capital $350 million in USDC and 15,250 BTC which totaled $673 million at today’s prices. Voyager Digital issued a default notice against 3AC and it claimed that it requested a partial $25 milion USDC repayment and added that it sought full repayment by today.
We are in the process of communicating with relevant parties and fully committed to working this out
— Zhu Su 🔺 (@zhusu) June 15, 2022
It seems that neither of the requests was met which is why it led to this afternoon’s default notice and claims that 3AC is insolvent. The default notice is a formal response that is issued by the lender when a borrower missed payments on their loan. Such a note doesn’t ensure that the lender will be made whole and it might mean that they can soon collect the initial collateral. Voyager concluded that its intent was on recovering the loan entirely but the company was unable to assess the amount that it will be able to recover from 3AC.
BlockFi’s risk management practices and systems allow us to act decisively to mitigate risk in accordance with our contracts. These actions may include margin calls and asset liquidation when appropriate.
— Zac Prince (@BlockFiZac) June 16, 2022
The company is in discussions with the advisors as to the legal remedies available. Once the darling of the crypto raging bull market, 3AC led by Su Zhu and Kyle Davies was hit hard by the recent crash. With the bear market deepening sparked by the Terra implosion, plenty of companies like Genesis Trading, blockfi, and BitMEX liquidated the 3AC outstanding loans. Amid the chaos, crypto exchange FTX and Alameda Research stepped in to supply bailouts for the companies and now the exchange is expected to acquire a $250 million stake in BLockfi, and Alameda already issuing Voyager the revolving line credit just to stay afloat.
As recently reported, The trading platform Voyager digital cuts down the daily withdrawal limit to $10,000 from the $25,000 after the news of the exposure to struggling hedge fund Three Arrows Capital. Voyager announced the update to the withdrawal limit a day ago as the company share prices crashed by 60%. Voyager Digital is a publicly-traded company that provides a crypto trading platform with a mobile app and debit card as well. The users are able to buy and sell over 100 different digital assets via the app.
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