Crypto Hedge Fund Three Arrows Capital Defaults on Loan Over $670M – Crypto hedge fund Three Arrows Capital, which was already known to be in trouble due to the recent market drop, defaulted on a loan of more than $670 million yesterday.

Digital asset brokerage firm Voyager Digital indeed released a statement Monday morning, in which it says Three Arrow Capital failed to repay a $350 million USDC-denominated loan, and 15,250 bitcoins, from worth about $323 million at today’s prices.

Voyager said it intended to pursue collection from 3AC (Three Arrows Capital). In the meantime, the broker emphasized that the platform continues to operate and execute client orders and withdrawals.

“We are working diligently and quickly to strengthen our balance sheet and pursue options so that we can continue to meet customer demands for liquidity,” said Stephen Ehrlich, CEO of Voyager.

Recall that Three Arrow Capital’s troubles appeared to start earlier this month after Zhu, one of 3AC’s two co-founders, said on Twitter (NYSE:) that the company is “contacting parties concerned” and that it is “fully committed to resolving this problem. He then provided no further details.

However, the Financial Times reported following the tweet that US crypto lenders BlockFi and Genesis liquidated some of 3AC’s positions, citing people familiar with the matter. 3AC had borrowed from BlockFi but was unable to meet the margin call, according to the FT.

3AC, which is one of the largest cryptocurrency-focused hedge funds, has borrowed large sums of money from various companies and invested in a number of different digital asset projects, but now seems taken in a vice due to the sharp drop in the value of cryptocurrencies in recent months.

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