Crypto broker Voyager Digital said on Wednesday that it may have to issue a default notice to embattled hedge fund Three Arrows Capital (3AC) over its debt obligations.
Voyager said its current exposure to 3AC consists of 15,250 Bitcoin ($311 million) and $350 million worth of USDC. The firm had made an initial request for repayment of $25 million USDC by June 24, and has requested that 3AC pay the remaining amount by June 27.
3AC has repaid neither of the requested amounts so far. Failure to repay the loan will result in Voyager slapping the hedge fund with a default notice, after which the broker will pursue recovery of the funds in a legal measure.
Voyager takes big hit from 3AC exposure
Voyager said in a press release that it in discussions with its advisors regarding any legal paths it can pursue over recovering its funds. The company is unable to gauge how much of its funds it will be able to recover from 3AC.
3AC is considering asset sales and bailout talks in the face of a potential insolvency. A sharp drop in crypto prices exposed the hedge fund to a series of margin calls that it was unable to meet.
