Crypto broker Voyager Digital said on Monday it has issued hedge fund Three Arrows Capital (3AC) with a notice of default.
The firm said in a press release that one of its units had issued 3AC with a default notice for its inability to repay a loan of 15,250 Bitcoin and $350 million in USDC- worth roughly $660 million.
Voyager had earlier this month flagged a potential default by 3AC. It now intends to pursue recovery of the funds through legal action.
Additionally, Voyager said it had also drawn down $75 million of a recent credit line provided to the firm by crypto trading house Alameda Research.
3AC default to see legal action
3AC’s default of the $660 million loan reflects the strained finances of the hedge fund. A sharp drop in the value of Lido staked Ethereum (stETH)- which 3AC had used extensively as collateral- exposed the firm to multiple margin calls, causing it to burn through its finances.
