Three Arrows Capital has to repay more than $670 million in loans
• Three Arrows Capital has to repay more than $670 million in loans
Cryptocurrency exchange Voyager Digital (NYSE: VYGVF) issued a default notice to hedge fund Three Arrows Capital (3AC) for failing to pay its 15,250 bitcoin and 350 million USD Coin (USDC) loan disclosed in a previous statement.
Prominent crypto hedge fund Three Arrows Capital, has to meet a deadline on Monday to repay more than $670 million in loans or face default. The ripple effect of the latter scenario could reflect throughout the digital asset market.
Voyager gave Three Arrows Capital until June 24 to repay $25 million USDC and the entire outstanding loan by June 27, Monday.
Voyager said that it “intends to pursue recovery from 3AC” and is talking to its advisors “regarding legal remedies available.”
Voyager said that it had access to the $500 million funds from its loan agreement with trading Alameda Research. Currently, the firm said that it accessed $75 million worth of funds from Alameda.
On Wednesday, Voyager's share price plummeted by 60% as crypto stocks went on a downward dive. The next day, Voyager reportedly cut its withdrawal amount to $10,000 amid its current issues with 3AC.