Voyager Digital declares Three Arrows Capital bankrupt

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Crypto broker Voyager Digital announced the default of the Three Arrows Capital fund on debt obligations for 15,000 BTC and $350 million in USDC.

Cryptocurrency broker Voyager Digital announced the default of Three Arrows Capital (3AC) on debt obligations in the amount of 15,250 BTC and $350 million in USDC stablecoin. About this broker informed in your press release. Voyager has announced plans to recover damages from 3AC and is already discussing available remedies with its advisors.

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Despite 3AC’s debts, Voyager said the company continues to operate and fulfill its obligations to its customers thanks to financial support from Alameda Ventures.

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“The default of 3AC does not violate the agreement with Alameda,” Voyager said.

Voyager Digital CEO Steven Erlich assured that the company intends to continue to work on strengthening the corporate balance sheet in order to meet the liquidity needs of customers.

The first signals about the potential bankruptcy of 3AC appeared in mid-June. At that time, on-chain analysts noticed that the hedge fund began to massively get rid of stETH, the staking token of the Lido cryptocurrency platform. At the same time, the Singaporean hedge fund began urgently selling stETH back in May, immediately after the collapse of the terraUSD (UST) stablecoin of the infamous Terra ecosystem. As a result of the operation, the fund withdrew about $246 million of capital from stETH.

Founded in 2012, Three Arrows Capital was considered one of the major investors in the cryptocurrency market. At one time, the firm has financially supported Aave, Avalanche, BlockFi, Deribit, Ethereum, Polkadot, Solana, and WOO Network.

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Source: Cryptocurrency

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