Lender is shooting three arrows with ultimatum to repay $ 658M or facing default

Three Arrows Capital may have a পর্যন্ত 658M cough until June 27 or it will be pushed to default by a lender whose patience is running out.

This is the latest challenge to deal with the disputed $ 10B hedge fund as it has bypassed its huge loanbook under the pressure of a historic crash in cryptocurrency. The fund owes a crypto exchange called Voyager Digital – and shows no signs of returning, the exchange said in a statement on Wednesday.

Failure to repay

Voyager Digital, a Vancouver-based concern, said it could “issue a default notice to Three Arrows for failing to repay its debt.”

The company said Three Arrows owes 15,250 bitcoins, which was worth more than $ 308M at the time of the New York midday transaction. Voyager said the hedge fund owed USDC $ 350M worth of stablecoins backed by Coinbase.

The situation is affecting Voyager Digital – its shares on the Toronto Stock Exchange fell 60% on Wednesday to 67 cents per share. Voyager says it has about $ 152M in cash and crypto assets in its hands, as well as $ 20M it can only use to buy USDC, a dollar-pagged stablecoin.

Investors jumped on the three arrows to get a grip on the depth of the problem

In a press release, Voyager said it had asked Three Arrows to pay DC 25M to USDC by Friday, “and subsequently requested payment of the full balance of USDC and BTC by June 27, 2022.”

Three arrows have been whipped this month as rumors spread about potential bankruptcy and founders Kyle Davis and Zhu Su ghostly lenders. The three arrows have yet to be refunded, Voyager said, and “this will constitute a default event if 3AC fails to pay the requested amount within this specified date.”

“Voyager wants to recover from 3AC and is in discussions with company advisers about available legal remedies,” the company said.

Market volatility

Three Arrows did not immediately respond to a request for comment. Drew Pearson, vice president of Voyager communications, reached out for comment, pointing to the company’s news release and public filing.

At the same time, Voyager has announced a deal with Alameda Ventures, a crypto investment firm, to receive ,000 200M in cash and a revolving credit line, financed by 15,000 bitcoins. “Credit facility earnings will be used to protect consumer assets in light of current market volatility and only if such use is required,” Voyager said.

Voyager and Alameda agreed to the transaction before the trouble with the Three Arrows, the company said.

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