Crypto Hedge Fund 3AC Issued Default Notice on $675M USD Loan
Voyager Digital says 3AC failed to make the required payments.
In a market update released Monday, June 27, cryptocurrency platform Voyager Digital shared that it has issued a notice of default to Three Arrows Capital (3AC) in regards to the fund’s outstanding loan worth approximately $675 million USD.
this morning prominent crypto hedge fund Three Arrows Capital AKA 3AC has defaulted on a loan worth more than $670 million w/ Voyager Digital
failed to repay a loan of $350M in USDC, and another 15,250 bitcoin
Dominoes continue to fall
— King BlackBored ?☠️? (@KingBlackBored) June 27, 2022
“We are in the process of communicating with relevant parties and fully committed to working this out,” said 3AC’s co-founder Zhu Su in his only public statement on the situation. What appears to be the fund’s Twitter account also shared that it is “committed to working this out.”
“Do not believe all that has been written about us,” it wrote.
Voyager has been able to continue its operations without interruption, fulfilling orders and withdrawals. The platform is said to have approximately $137 million USD in cash and owned crypto assets on hand. Voyager also recently announced in a previous market update that it has access to $200 million USD in cash and USDC, as well as a 15,000 BTC revolver from Alameda Ventures Ltd.
“The default of 3AC does not cause a default in the agreement with Alameda,” it noted.
“We are working diligently and expeditiously to strengthen our balance sheet and pursuing options so we can continue to meet customer liquidity demands,” said Voyager CEO Stephen Ehrlich.