Three Arrows Capital Allegedly Owes Voyager Digital $655M — Crypto Firm Is 'Unable to Assess' if It Can Recover the Funds.
24 Jun 2022, 08:00
Three Arrows Capital Allegedly Owes Voyager Digital $655M — Crypto Firm Is ‘Unable to Assess’ if It Can Recover the Funds
According to reports, the TSX-listed Voyager Digital is another company that has been negatively affected by financial issues tied to the crypto hedge fund Three Arrows Capital (3AC). In a letter to investors, Voyager’s management explained that 3AC potentially defaulted on a $655 million loan and it hopes to obtain some of the funds by the end of this month.
The Three Arrows Contagion: 3AC Owes $655 Million to Voyager Digital — Management Has Set a Repayment Date3AC’s financial hardships have seemingly started a contagion throughout the crypto industry and while a number of firms said they were safe, others explained they were suffering from the fallout. For instance, a company backed by 3AC called Finblox detailed on June 16 that it had to pause rewards (up to 90% APY) for all of its users, and the platform upped withdrawal limits as well. This week, the publicly listed crypto company Voyager Digital revealed it was dealing with issues tied to 3AC.
In a letter sent to Voyager’s investors on Wednesday, the company disclosed it was owed $655 million and 3AC was supposed to pay the funds back in bitcoin (BTC) and the stablecoin usd coin (USDC). Voyager is owed 15,250 BTC and 350 million USDC, according to the company. Management said it originally asked for $25 million worth of USDC to be paid by June 24, but now it wants the entire balance of USDC and BTC by June 27.