Time has run out on the clock for Three Arrow Capital (3AC)’s loan from Toronto-based digital asset brokerage Voyager Digital.
The firm issued a notice of default this morning to 3AC after the ailing hedge fund failed to meet its loan deadline this morning. The brokerage’s exposure to 3AC consists of $350 million and 15,250 BTC, now totaling $675 million due to Bitcoin
The company initially requested a repayment of $25 million USDC
As of this morning, Voyager still holds $137 million in cash and assets, according to a company statement. They also have access to $200 million in cash and USDC and 15,000 bitcoin credit line from Alameda Research, a quantitative trading firm launched by FTX CEO Sam Bankman-Fried. The company accessed $75 million of the funds and may “continue to make use of the Alameda facilities to facilitate customer orders and withdrawals, as needed,” per the statement.
Withdrawals on Voyager continue to be limited to $10,000 a day, down from $25,000 before the initial 3AC potential notice of default, and 20 transactions per 24 hour period, according to its website.
“We are working diligently and expeditiously to strengthen our balance sheet and pursuing options so we can continue to meet customer liquidity demands,” CEO of Voyager Stephen Ehrlich said in the statement.
Voyager Digital intends to pursue recovery from 3AC and has also brought in investment firm Moelis