On June 27, 2022, crypto hedge fund Three Arrow Capital defaulted on a $670 million loan, according to lending firm Voyager Digital. The loan includes approximately 15,250 Bitcoins and $350 million USDC stablecoins.
Three Arrow Capital’s latest default is also not a surprise as it has previously seen a liquidation of fund positions by BlockFi and Genesis.
“We are working urgently to strengthen our balance sheet and provide options so we can continue to meet our clients’ liquidity needs,” said Voyager CEO Stephen Ehrlich.
Voyager said it will attempt to raise capital from Three Arrow Capital, also known as 3AC, and is in contact with its legal team to map out next steps.
Voyager and Three Arrow Capital
Voyager recently set a customer withdrawal limit of $10,000 on Thursday, predicting 3AC defaults.
Recently, Sam Bankman-Fried – CEO of crypto exchange FTX provided emergency liquidity, lending BlockFi $250 million last week. A week earlier, Sam Bankman-Fried had lent Voyager Digital a loan totaling about $485 million in cash and crypto.
And earlier this month, crypto lending platform Celsius completely halted withdrawals while crypto exchange Coinflex froze customer assets.