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Three Arrows Capital Allegedly Owes Voyager Digital $655M — Crypto Firm Is ‘Unable to Assess’ if It Can Recover the Funds

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TSX-listed Voyager Digital is another company that has been negatively impacted by financial woes related to crypto hedge fund Three Arrows Capital (3AC), according to reports. In a letter to investors, Voyager management explained that 3AC has potentially defaulted on its $655 million loan and hopes to receive some of the funds by the end of this month.

Three Arrow Infestation: 3AC owes Voyager Digital $655M – Management Sets Maturity Date

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3AC’s financial difficulties have apparently caused an infection throughout the crypto industry, and while a number of firms have said they are safe, others have explained that they are suffering the consequences. For example, Finblox, supported by 3AC. detailed On June 16, she had to suspend the payment of rewards (up to 90% per annum) for all her users, as well as increase the withdrawal limits. This week, the public cryptocurrency company Voyager Digital disclosed he dealt with issues related to 3AC.

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In a letter sent to Voyager investors on Wednesday, the company said it was owed $655 million and 3AC had to return the funds in bitcoin (BTC) and the usd stablecoin (USDC). Voyager owes 15,250 BTC and $350 million, according to the company. Management said it originally requested a $25 million USDC payout by June 24, but now it wants the entire USDC balance and BTC until June 27th.

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TSX-listed VOYG-T shares lose half their value in a day – Voyager “can’t estimate at this point how much it can recover”

The news didn’t seem to go over well with Voyager investors, as the company’s shares fell 53% in 24 hours. Currently, shares of VOYG-T listed on the TSX are down 52% and are trading at $0.76 per share. On June 21, VOYG-T changed hands at $1.60 per share, and in March 2021, VOYG-T hit an all-time high (ATH) of $32.68 per share. VOYG-T is currently over 97% lower than ATH and the stock has been falling since the crypto markets have fallen in value. The announcement of default on the 3AC loan dealt another blow to the company’s share price.

The letter, which discusses the initial request for USDC payment and then the request for the entire balance, says that Voyager does not know if it will be redeemed. “None of these sums has been returned, and the non-execution [Three Arrows] repayment of any requested amount by these specified dates will constitute a default event,” Voyager said. “[The company is] unable to estimate at the moment the amount he can recover.” Bitcoin.com News recently reported on Three Arrows Capital and explained why the founders of the company are keeping quiet about the situation.

3AC co-founder Kyle Davis told reporters Wall Street Journal (WSJ) that the effects of Terra LUNA and UST were detrimental to the company, and plans were being made to find a “just solution” for all 3AC members. In addition, 3AC allegedly tried to present the GBTC arbitrage deal to many large investors days before the company’s rumored collapse. Aside from Finblox, Voyager and 3AC, Mike Novogratz’s Galaxy Digital stock has dropped significantly since Terra LUNA and UST failed. Galaxy shares are down nearly 90% from their share price highs in mid-November.

Novogratz also remained silent for a while after the Terra fiasco, but then issued a public apology about it, but said that the Galaxy was not greatly affected by Terra’s collapse. This is because Novogratz said that Galaxy has a core investing principle that includes only investing in what you are comfortable with losing. Since the letter, Novogratz has been slightly more active on social media, while many others who have promoted or invested in Terra have remained silent or disassociated themselves from the blockchain project.

What do you think of the challenges Voyager Digital is facing with cryptocurrency hedge fund 3AC? Let us know what you think about it in the comments section below.

Denial of responsibilityA: This article is for informational purposes only. This is not a direct offer or solicitation to buy or sell, nor is it a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is directly or indirectly liable for any damage or loss caused or alleged to be caused by the use of or reliance on any content, goods or services mentioned in this article.





Credit : news.bitcoin.com

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