Voyager Digital has issued a notice of default to Three Arrows Capital, claiming the hedge fund defaulted on a loan of 15,250 bitcoins, worth about $315 million on Monday and $350 million in USD Coin (USDC).
“We are working diligently and expeditiously to strengthen our balance sheet and pursuing options so we can continue to meet customer liquidity demands,” Voyager CEO Stephen Ehrlich said in a statement Monday.
Voyager, a publicly-traded cryptocurrency platform founded in 2018, allows investors to trade over 100 crypto-assets and earn up to a 12% yield on various tokens.
The statement indicated that as of June 24, 2022, Voyager had roughly $137 million in cash and crypto-assets on hand.
“The Company also has access to the previously announced US$200 million cash and USDC revolver and a 15,000 BTC revolver from Alameda Ventures Ltd,” the statement said.
The default notice comes as cryptocurrency industry members continue to assess the contagion risk following Three Arrows Capital’s apparent failures and crypto lender Celsius.
“At the end of the day,” said Bill Barhydt, CEO of Abra, “market participants should take away that risk management is one of, if not the most, critical aspects of the crypto lending space.” “It’s been an issue in this space for years, and we’re now seeing it firsthand with multibillion-dollar businesses.”
Last week, Compass Point Research and Trading analysts Chris Allen and Alessandro Balbo wrote in a research note that Voyager’s exposure to Three Arrows Capital “raises survivability questions.”
Three Arrows Capital has not publicly responded to the default notice and has not responded to Blockworks’ request for comment. A Voyager spokesperson declined to comment further.