Voyager Digital Issues 3AC Notice of Default on Loan Around $665M

As of Monday, Voyager’s platform continues to operate and fulfill customer orders and withdrawals, and its liquidity levels remain healthy, the company said

article-image

Source: Shutterstock

share

key takeaways

  • Voyager Digital’s exposure to 3AC could pose serious issues for the company, analysts say
  • Three Arrows owes Voyager 15,250 bitcoins and $350 million in USDC

Voyager Digital has issued a notice of default to Three Arrows Capital, as the company claims the hedge fund failed to make payments on a loan of 15,250 bitcoins, worth about $315 million on Monday, and $350 million in USD Coin (USDC).

“We are working diligently and expeditiously to strengthen our balance sheet and pursuing options so we can continue to meet customer liquidity demands,” Voyager CEO Stephen Ehrlich said in a statement Monday.

Voyager, a publicly-traded crypto platform founded in 2018, allows investors to trade more than 100 cryptoassets and earn up to 12% yield on various tokens.

Voyager’s platform continues to operate and fulfill customer orders and withdrawals, and its liquidity levels remain healthy, the company added. 

As of June 24, 2022, Voyager had approximately $137 million in cash and owned cryptoassets on hand, the statement said. 

“The Company also has access to the previously announced US$200 million cash and USDC revolver and a 15,000 BTC revolver from Alameda Ventures Ltd,” the statement said. 

The notice of default comes as cryptocurrency industry members continue to evaluate the contagion risks following the apparent collapse of Three Arrows Capital and crypto lender Celsius

“At the end of the day, what market participants should take away is that risk management is one of, if not the most, critical aspects of the crypto lending space,” Bill Barhydt, CEO of Abra, said. “It has been an issue in this space for years, and now we are seeing it first-hand with multi-billion dollar enterprises.” 

Compass Point Research and Trading analysts Chris Allen and Alessandro Balbo said in a research note last week that Voyager’s exposure to Three Arrows Capital “raises survivability questions” for the company.

Three Arrows Capital has not publicly responded to the notice of default and did not immediately respond to Blockworks’ request for comment. A spokesperson from Voyager declined to comment further.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally

article-image

While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders

article-image

Trading volumes totalled $154 billion in Q4, including $125 billion in institutional volume

article-image

DeFi on Bitcoin is all the rage right now and Stacks is positioned to benefit

article-image

The Boston Globe reports that lawyer John Deaton is weighing a possible bid

article-image

Ethereum’s Dencun upgrade will enable Uniswap v4 to optimize smart contracts for complex functionality