THE DAILY ENCRYPT

October 3, 2022

Call the Bailiffs – Voyager Digital goes after Three Arrows Capital for unpaid debt – $650 Million

Voyager Digital plans to sue Three Arrows Capital over a $650 million loan default. Three Arrows Capital had its positions liquidated after failing to meet...
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Voyager Digital plans to sue Three Arrows Capital over a $650 million loan default. Three Arrows Capital had its positions liquidated after failing to meet margin requirements.

Voyager Digital, which offers up to 12% returns and crypto apps, stated that it will pursue Three Arrows Capital if the company fails to repay a loan amounting to more than $650million.

According to a statement , the crypto platform could issue a notice to Three Arrows Capital (the crypto hedge fund also known as 3AC), according to Wednesday’s statement . Voyager has exposure to 3AC of 15,250 BTC (312 million dollars) and 350 million USDC (350 million).

Voyager shares, which were listed in Toronto, dropped 43% at 9:47 AM. ET on Wednesday following the announcement.

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3AC, a Singapore-based fund, had its positions liquidated after it failed to meet the margin calls. Former classmates Su Zhu, Kyle Davies and Kyle Davies founded the fund in 2012. It is now facing significant losses after last month’s collapsed Terra ecosystem and native luna token. According to Davies, the firm hopes to reach a settlement with creditors to give it more time to develop a plan.

Voyager requested a initial repayment of 25,000,000 USDC by June 24, and then asked for the full amount by June 27.

Voyager states that neither of these amounts have been repaid. Failure to repay the requested amount within these dates will be considered a default. Voyager is currently in talks with its advisors about the legal remedies available, although it’s not clear how much it can recover. The Block reached out to 3AC for comment but they did not immediately respond.

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Voyager last week announced that it had obtained a loan from Alameda Ventures to “save customer assets in the face of market volatility.” Alameda will provide $200 million cash, USD Coin (USDC), and a 15,000 BTC revolver ($300 million). Voyager stated that the credit line will be used only if necessary.

Elena Argyros

Elena Argyros

Elena is cryptocurrency writer / journalist based in Europe. She has extensive knowledge in the crypto space and is a solidity programmer by trade. Elena has built an extensive resume working with some of the most ground breaking blockchain firms. Being in Europe, Elena has amassed a large network of professionals in the space and states "The technology behind blockchain is going to impact everyone on earth in a good way, once you get to understand it".
Elena Argyros

Elena Argyros

Elena is cryptocurrency writer / journalist based in Europe. She has extensive knowledge in the crypto space and is a solidity programmer by trade. Elena has built an extensive resume working with some of the most ground breaking blockchain firms. Being in Europe, Elena has amassed a large network of professionals in the space and states "The technology behind blockchain is going to impact everyone on earth in a good way, once you get to understand it".

© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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