Crypto hedge fund Three Arrows Capital (3AC) has defaulted on an estimated loan of $670 million, as per the market update by Voyager Digital.

In a release dated June 27, Voyager noted that it has issued a notice of default to 3AC for failure to make payments on its previously disclosed loan of 15,250 BTC and $350 million USDC.  

The statement said, “Voyager intends to pursue recovery from 3AC and is in discussions with the Company’s advisors as to legal remedies available.”

The Company has appointed Moelis & Company as financial advisors.

Meanwhile, the company highlighted that it has also accessed $75 million in a line of credit from Alameda and might continue to use the facilities as and when a need arises. As of last weekend, the company revealed that it had around $137 million in cash and owned crypto assets in hand. In addition, the company noted to have access to the previously announced $200 million cash and USDC revolver and a 15,000 BTC revolver from Alameda Ventures Ltd.

That said, the crypto platform ensured, “The default of 3AC does not cause a default in the agreement with Alameda.”

Stephen Ehrlich, Chief Executive Officer of Voyager, “We are working diligently and expeditiously to strengthen our balance sheet and pursuing options so we can continue to meet customer liquidity demands,”

However, an accurate future course of action cannot be predicted at this hour. Voyager also acknowledged that “New risks emerge from time to time. It is not possible for our management to predict all risks…”

This includes uncertainty around the amount Voyager will be able to recover from 3AC, or if a credit line will be available sufficiently or promptly for the platform.

In another update, the Wall Street Journal reported on Friday that Celsius Network LLC has hired restructuring consultants for advisory on a possible bankruptcy filing. Meanwhile, several crypto platforms, including the recent update from CoinFlex, have suspended withdrawals citing counterparty uncertainty.

The development is happening on the backdrop of the cryptocurrency market collapse that has got the $3 trillion sector to under $1 trillion in June. At press time, BTC is hovering close to the level of $21,000 on CoinGecko.

Banking giant Goldman Sachs has also downgraded crypto exchange Coinbase on a back of a massive price crash.

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The post Voyager Digital Issued Notice of 3AC’s Loan Default; Here’s What Might Be Next appeared first on BeInCrypto.

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