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Voyager Digital has revealed the extent of its exposure to Three Arrows Capital as the beleaguered crypto hedge fund faces mass liquidations and insolvency hurdles amid turbulent digital asset market conditions.
According to a statement released by Voyager on Wednesday, 3AC owes the crypto broker $350 million in USDC and some 15,250 BTC worth an estimated $300 million at press time. Voyager requested a repayment of $25 million in Circle’s USDC by June 24, 2022, at first.
While it’s unclear whether Su Zhu’s 3AC responded to the initial request or not, Voyager Digital has now asked for the crypto hedge fund to repay all digital assets by Monday, June 27, 2022. The total loan balance is approximately $650 million.
[DB] Voyager's exposure to 3AC consists of 15,250 BTC and $350 million USDC, 3AC has not repaid requested amounts.
Voyager: Failure to repay by June 27 will constitute an event of default
Voyager intends to pursue recovery from 3AC
— db (@tier10k) June 22, 2022
The crypto broker said that they are ready to consider legal remedies if 3AC defaults on the issued repayment date, per the statement.
Neither of these amounts has been repaid, and failure by 3AC to repay either requested amount by these specified dates will constitute an event of default. Voyager intends to pursue recovery from 3AC and is in discussions with the Company’s advisors regarding the legal remedies available. The Company is unable to assess at this point the amount it will be able to recover from 3AC.
Three Arrows Capital currently faces monetary obligations on multiple fronts following a massive slump in the crypto market after Bitcoin fell below $20,000. As EthereumWorldNews reported, 3AC’s leveraged positions on Bitmex, Deribit, and FTX were liquidated.
SBF-Backed Alameda Loans $$485 million To Voyager Digital
The crypto broker also confirmed its credit line agreement with Alameda Ventures, the VC firm backed by FTX CEO Sam Bankman-Fried. Alameda’s credit line includes $200 million in USD and USDC. A 15,000 BTC revolver is also attached to the deal.
Voyager Digital pointed out the loan will bolster the company’s balance sheet and protect customer assets in case of volatility or unexpected macro conditions.
To better serve and protect our customers in current market conditions, today we announced that we signed a term sheet for a $200 million and 15,000 BTC revolving line of credit with industry leader, Alameda Research.
Read the release: https://t.co/Pz1b3wpaj0
— Voyager (@investvoyager) June 17, 2022
