The Voyager Digital platform has declared that Three Arrows Capital (3AC) has defaulted on the debt binding the two companies. This dispute concerns a loan of 15,250 BTC and 300 million USDC.
3AC fails to reimburse Voyager Digital
Last week, the cryptocurrency platform Travel Digital had made official the critical situation in which it found itself because of a loan granted to Three Arrows Capital (3AC). Today, the company officially declared the latter in default of payment.
Indeed, it turns out that 3AC took out a loan of 15,250 BTC and 350 million USDC from Voyager. While the investment fund is undergoing numerous liquidations, it had an ultimatum running until June 24 for the reimbursement of USDC 25 million, as well as until June 27 for the balance of the debt. No debt has been honoured.
However, Voyager indicates that it intends to be reimbursed by 3AC. This is why its legal teams are at work to explore the different possibilities that are offered to society.
While the company is publicly traded, it is currently trading at $0.54. This represents a discount of more than 98% since its high at $30.2 in April 2021.
Voyager share price
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Alameda Research in support of Voyager
While this position placed Voyager Digital in financial difficulties, Alameda Research, Sam Bankman-Fried’s fund, granted the platform a line of credit of $200 million and 15,000 BTC.
This operation allows Voyager to have some ammunition, so as not to find itself in default of payment vis-à-vis its customers. Last week, the platform had lowered the daily withdrawal limitfrom $25,000 to $10,000, with the aim of preventing this risk of insolvency.
Alameda Research indirectly owns 11.56% of the shares of Voyager. For legal reasons, the loan contracted between these two companies can only be released up to 75 million dollars every 30 rolling days.
Thus, Voyager initially has 75 million dollars, which comes add to equity of $137 million in fiat. The platform also has a share of its cash in cryptocurrencies, but we do not know the amount. Its general manager, Stephen Ehrlich, also wanted to reassure the community about the efforts made to manage this situation as well as possible. :
“We are working diligently and quickly to strengthen our balance sheet and seek options so that we can continue to meet client liquidity demands. »
On the other hand, the company requested the services of investment bank Moelis & Companyfor financial advice.
Regarding Three Arrows Capital, the latter is lacking in information with the general public about his situation. Only a simple tweet was published on June 24, affirming the company’s commitment to fixing the problems:
Committed to working this out, do not believe all that has been written about us.
—Three Arrows Capital (@3arrowscap) June 24, 2022
On the side of Zhu Su and Kyle Davies, the founders of the fund, while they were relatively active on Twitter, they also show themselves, strangely silent since the affair broke out.
👉 Also in the news – Celsius Network: Goldman Sachs brings together investors to buy platform assets
Sources: Release 1, Release 2, TradingView
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