Prominent cryptocurrency hedge fund Three Arrows Capital has defaulted on a $670 million loan from digital asset brokerage Voyager Digital, which issued a notice stating the fund failed to repay a $350 million USDC and 15,250 BTC loan.
Voyager has said it intends to pursue recovery from Three Arrows Capital, and will in the meantime keep on processing customers’ orders and withdrawals.
CEO of Voyager Digital, Stephen Ehrlich, was quoted saying that the firm is “working diligently and expeditiously to strengthen our balance sheet and pursuing options so we can continue to meet customer liquidity demands.”
Voyager said it has around $137 million in U.S. dollars along with crypto assets. The company also has access to a $200 million cash and USDC revolver, as well as a 15,000 BTC revolver from Alameda Ventures, Sam Bankman-Fried’s quantitative trading firm. Voyager has used $75 million out of the $500 million line of credit Alameda provided it.