Skip to main content

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

http://motleybloggers.com/wp-content/uploads/2022/06/three-arrows-capital-allegedly-owes-voyager-digital-655m-crypto-firm-is-unable-to-assess-if-it-can-recover-the-funds.jpg





According to reports, the TSX-listed Voyager Digital is another company that has been negatively affected by financial issues tied to the crypto hedge fund Three Arrows Capital (3AC). In a letter to investors, Voyager’s management explained that 3AC potentially defaulted on a $655 million loan and it hopes to obtain some of the funds by the end of this month.


The Three Arrows Contagion: 3AC Owes $655 Million to Voyager Digital — Management Has Set a Repayment Date


3AC’s financial hardships have seemingly started a contagion throughout the crypto industry and while a number of firms said they were safe, others explained they were suffering from the fallout. For instance, a company backed by 3AC called Finblox detailed on June 16 that it had to pause rewards (up to 90% APY) for all of its users, and the platform upped withdrawal limits as well. This week, the publicly listed crypto company Voyager Digital revealed it was dealing with issues tied to 3AC.


In a letter sent to Voyager’s investors on Wednesday, the company disclosed it was owed $655 million and 3AC was supposed to pay the funds back in bitcoin (BTC) and the stablecoin usd coin (USDC). Voyager is owed 15,250 BTC and 350 million USDC, according to the company. Management said it originally asked for $25 million worth of USDC to be paid by June 24, but now it wants the entire balance of USDC and BTC by June 27.

TSX-Listed Stock VOYG-T Loses Half of Its Value in a Day — Voyager Is ‘Unable to Assess at This Point the Amount It Will Be Able to Recover’


The news seemingly did not sit so well with Voyager investors as the company’s shares dropped 53% in value during a 24-hour period. Presently, the TSX-listed stock VOYG-T is down 52% and trading for $0.76 per unit. On June 21, VOYG-T exchanged hands for $1.60 per share and in March 2021, VOYG-T saw an all-time high (ATH) at $32.68 per share. VOYG-T is currently more than 97% lower than the ATH and the stock has been sliding lower ever since crypto markets have dropped in value. The 3AC loan default announcement added another blow to the value of the company’s shares.


The letter that discusses the initial USDC payment request, and then the request for the entire balance, says that Voyager does not know if it will be repaid. “Neither of these amounts has been repaid, and failure by [Three Arrows] to repay either requested amount by these specified dates will constitute an event of default,” Voyager said. “[The company is] unable to assess at this point the amount it will be able to recover.” MotleyBloggers.com News recently reported on Three Arrows Capital and explained how the company’s founders have been silent about the situation.


3AC co-founder Kyle Davies did disclose to the Wall Street Journal (WSJ) that the Terra LUNA and UST fallout hurt the company and plans were being made to find an “equitable solution” for all of 3AC’s constituents. Furthermore, 3AC allegedly tried to pitch a GBTC arbitrage trade to a lot of big name investors a few days before the company’s rumored collapse. Besides Finblox, Voyager, and 3AC, Mike Novogratz’s Galaxy Digital has seen its shares plummet significantly since the Terra LUNA and UST fallout. Galaxy’s shares are down close to 90% from the share’s price highs in mid-November.


Novogratz was also silent for a bit following the Terra fiasco but then published a public apology about the matter but said Galaxy did not suffer much from the Terra collapse. This is because Novogratz said that Galaxy stuck to a core tenet of investing which includes only investing in what you are comfortable losing. Since the letter, Novogratz has been a bit more active on social media while many others who promoted or invested in Terra have remained silent or dissociated themselves from the blockchain project.




Tags in this story

$655 million loan, 3AC, 3AC loan default, Bitcoin (BTC), Crypto, Cryptocurrency, defaulters, Digital Assets, Finblox, loan default, loans, LUNA, Stock Market, Terra fiasco, Three Arrows Capital, TSX-listed, usd coin (USDC), UST fallout, voyager, VOYG-T, VOYG-T stock

What do you think about the problems Voyager Digital faces with the crypto hedge fund 3AC? Let us know what you think about this subject in the comments section below.








Jamie Redman


Jamie Redman is the News Lead at MotleyBloggers.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for MotleyBloggers.com News about the disruptive protocols emerging today.







Image Credits: Shutterstock, Pixabay, Wiki Commons

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




Read disclaimer




Origina post from
https://motleybloggers.com/three-arrows-capital-allegedly-owes-voyager-digital-655m-crypto-firm-is-unable-to-assess-if-it-can-recover-the-funds/

Comments

Post a Comment

Popular posts from this blog

P2P Bitcoin Traders in Nigeria Think Outside the Box in the Wake of CBN Restrictions

After the Central Bank of Nigeria issued a directive targeting the country’s cryptocurrency industry, bitcoin and altcoin trade volumes on centralized exchanges immediately plunged. Nevertheless, the new regulations seem to have succeeded in boosting crypto trade volumes on informal markets or on peer-to-peer trading platforms. Nigerian Crypto Traders Get Creative Still, the increasing trades on informal platforms have also led to increased reports of users losing money to con artists. Moreover, with the CBN seemingly eager to see volumes of crypto trades plummet, Nigerian users had to find ingenious but legal ways of getting around the central bank’s imposed restrictions. As shown in one local report , one such legal way is through an app created by one local crypto start-up, Patricia. According to the report, this application is already enabling Nigerian users to buy or sell their crypto assets securely and without running afoul of CBN regulations. Therefore, in this repor...
Post a Comment
Read more

A Jacobin Podcast Review: Critiques on Crypto and Sterlin’s Response

https://motleybloggers.com/wp-content/uploads/2022/01/a-jacobin-podcast-review-critiques-on-crypto-and-sterlins-response.jpg The following opinion editorial is a Jacobin Podcast review written by the author Sterlin Lujan , the chief risk officer with Cryptospace. The Jacobin Podcast episode called: “ Dig: Cryptocurrency w/ Edward Ongweso Jr & Jacob Silverman, ” touches upon “cryptocurrency, NFTs, Elon Musk, the metaverse, meme stocks, and techno-utopianism amid the crushing reality of our neoliberal hellscape.” Cryptocurrency isn’t fringe technology anymore. Over the last decade, it has become embedded into finance, culture, and even our social life. It’s drastically changing the way we think about money, economics, and human action. However, some people, primarily on the left, are skeptical of cryptocurrency. Many of them hate it, regardless of how much of a godsend it has been for many. My friend, thought leader, author, and psychedelic visionar...
Post a Comment
Read more

Bitcoin, Ethereum Technical Analysis: ETH Back Under $2,000 as Balenciaga Gains Lose Steam

https://motleybloggers.com/wp-content/uploads/2022/05/bitcoin-ethereum-technical-analysis-eth-back-under-2000-as-balenciaga-gains-lose-steam.jpg Following strong gains to start the week, BTC once again fell under $30,000, as crypto prices moved lower on Tuesday. The downturn follows up from yesterday’s rally, which came as Balenciaga announced it would be accepting crypto payments. ETH also dropped, falling under $2,000 today. Bitcoin Bitcoin fell under $30,000 on Tuesday, as bears returned to action following a green start to the week. Following a high of $30,547.50 during Monday’s session, BTC /USD fell to an intraday low of $28,975.56 earlier today. Today’s drop saw BTC fall by over 5% in the day, as bullish sentiment following the Balenciaga crypto announcement faded. BTC /USD – Daily Chart Since then, bears have now pushed prices closer to support at $28,800, which is an area where BTC has resided over the past few weeks. Looking at the chart, the 14-da...
Post a Comment
Read more