© Reuters
Investing.com – One of the largest crypto hedge funds has defaulted on a loan worth over $670 million. Digital asset brokerage firm Voyager Digital issued a notice Monday morning saying the fund failed to repay a loan of $350 million in USDC and 15,250 bitcoins, worth around $323 million. dollars at today’s prices.
This fund is Three Arrows Capital. 3AC’s solvency crisis comes after weeks of turmoil in the cryptocurrency market, which wiped out hundreds of billions of dollars in value. The and ethereum are both trading slightly lower over the past 24 hours. Separately, the overall crypto market capitalization is heading towards $900 billion, down from around $3 trillion at its peak in November 2021.
Voyager said it intended to pursue collection from 3AC (Three Arrows Capital). In the meantime, the broker stressed that the platform continues to operate and execute client orders and withdrawals in an attempt to contain fear of contagion across the wider crypto ecosystem.
“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.
Voyager said it has around US$137 million and owns crypto assets. The company also noted that it has access to a revolving credit of $200 million in cash and USDC, as well as another of 15,000 bitcoins from Alameda Ventures.
Last week, Alameda, the quantitative trading firm of FTX founder Sam Bankman-Fried, committed $500 million in funding to Voyager Digital, a cryptocurrency broker. Voyager has already drawn $75 million from this line of credit. “The failure of 3AC does not result in a failure in the agreement with Alameda,” the statement said.