Voyager Digital has formally issued beleaguered crypto hedge fund Three Arrows Capital (3AC) a notice of default over the failure to honor loan payments requests.
The company last week announced that it had asked 3AC to repay the loan of $350 million USDC and 15,250 BTC by 27 June, failure of which would result in a default notice.
On Monday, Voyager confirmed in an update that it had indeed issued the notice and was looking to recovery mechanisms.
Moelis & Company are the company’s financial advisors as they assess the available legal remedies.
Voyager’s move comes as 3AC’s troubles put the Singapore-based crypto firm on the cusp of failure. Already, there have been multiple liquidations over the past few weeks, and it’s unlikely the firm will survive the implosion that follows its massive bet and exposure to the collapsed LUNA.
Voyager taps into credit line
Voyager says its operations are unaffected and that it continues to offer normal customer withdrawals. The firm had cash ($137 million by June 24) and owns crypto assets on hand, it said.
Last week the company secured a revolving line of credit from Alameda Research, which gives it access to $200 million USDC and cash as well as 15,000 BTC.
The Monday announcement confirmed that Voyager had tapped into the credit facility, accessing $75 million.