Crypto app Voyager sent a notice of default to three Arrows Capital (3AC) major crypto hedge fund. 3AC won’t be able to repay Voyager’s massive loan. It comes to at least 15,250 Bitcoin (BTC) and another $350 million in coins (USDC).
3AC Should Pay Bitcoin to Voyager
This news comes amid already dire market conditions. Once again, it appears that two major parties are in deep trouble. 3AC has borrowed $325 million in BTC and $350 million in USDC from Voyager, an app where one can earn up to 12% interest by lending cryptocurrency. If 3AC fails to repay the loan, Voyager itself could be in deep trouble.
However, Voyager says it is still able to carry out customer withdrawals. To avoid even bigger problems, it recently received $75 million in revolving credit from Alameda Research, a company owned by the CEO of the crypto exchange. FTX† In the press announcement Stephen Ehrlich, CEO of Voyager stated:
“We are working very hard to strengthen our balance sheet and explore options so that we can continue to meet the liquidity requirements of clients,”
Hedge fund in trouble after LUNA crash
3AC ran into trouble after the complete collapse of the Terra ecosystem and the LUNA cryptocurrency. Hedge fund positions are liquidated because it can no longer meet marginal calls.
As a result, she has incurred huge losses and is now unable to repay the loans as mentioned above. Due to the deep meltdown of cryptocurrencies that is happening now, a lot of crypto companies are collapsing. This is partly because filtering processes such as those in 3AC can cause a broader chain reaction.
So Alameda Research has already offered Voyager a helping hand with $75 million in credit. Previously it was in Crypto News To read cryptocurrency exchange Binance will not go to 3AC a Helping hand To view.
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