A large crypto exchange is issuing a notice of default to a major crypto hedge fund.
In a new announcement, Voyager Digital says they intend to seek and recover both Bitcoin (BTC) and US Dollar Coin (USDC) owed by Three Arrows Capital.
“[Voyager Digital] has issued a notice of default to Three Arrows Capital (3AC) for failure to make the required payments on its previously disclosed loan of 15,250 BTC and $350 million USDC.”
With Bitcoin trading for $20,711 at time of writing, the 15,250 BTC is currently worth over $300 million, bringing the total debt to slightly over $665 million.
In the announcement, Voyager assures customers the default will not affect normal platform operations. Voyager plans to continue operating by using capital and facilities from Alameda Ventures Ltd. as the result of a separate deal.
“The default of 3AC does not cause a default in the agreement with Alameda.”
Last week, Three Arrows Capital founders Kyle Davies and Su Zhu said the crypto hedge fund was hit with heavy losses amid the crypto downturn.
Davies and Zhu said 3AC has hired legal professionals and financial advisors to help them meet its obligations to lenders and investors while mulling its options, including a rescue from outside firms.
“We have always been believers in crypto and we still are. We are committed to working things out and finding an equitable solution for all our constituents.”
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