- Any failure by 3AC to do the repayment prescribed would constitute an event of default.
- There has been a revolving line of credit set up for Voyager by Alameda Research.
Three Arrows Capital (3AC), a troubled crypto investment business, faces a “notice of default” from Voyager Digital if it fails to complete a loan repayment. When the New York-based crypto platform stated that it was exposed to 3AC for $15,250 BTC and $350 million in USDC, its shares dropped by more than 60%.
Trouble Rises For 3AC
According to the New York-based Corporation, there was an initial demand for $25 million in USDC by June 24, 2022, and a second demand for the whole debt to be paid by June 27, 2022. There has been no repayment of these amounts, and any failure by 3AC to do so would constitute an event of default.
The statement reads:
“Neither of these amounts has been repaid, and failure by 3AC to repay either requested amount by these specified dates will constitute an event of default.”
While Voyager “intends to pursue recovery from 3AC,” it says it has been consulting with its legal counsel about the options that may be available. The firm stated that it is “unable to assess at this point the amount it will be able to recover from 3AC.”
There has been a revolving line of credit set up for Voyager by Alameda Research, with an aggregate principal amount of USDC $200 million, and a revolving line of credit for 15,000 BTC set up last week. Until recently, Singapore-based 3AC was on the verge of bankruptcy after failing to pay margin calls from several lenders, including BlockFi and Genesis Trading, which provides financial services.