Voyager defaults on $675M loan to 3AC; lawsuit follows

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Voyager Digital has sent a default notice on Three Arrows Capital for a 15,250 BTC loan and expects to take additional legal action to reclaim the monies.

Three Arrows Capital (3AC) has received a default notice from Voyager Digital Limited for failing to meet its loan commitments.

Voyager is entitled $15,250 Bitcoin (roughly $325 million at the current pricing) and $350 million USDC, according to the press statement. The company stated that it will take legal measures to reclaim the monies.

“Voyager intends to pursue recovery from 3AC and is in discussions with the Company’s advisors as to legal remedies available.”

Looking for assistance from Alameda Research

In reaction to the developing crypto deleveraging scenario, Voyager instituted a $10,000 customer withdrawal restriction on June 22.

Voyager had agreed to a rescue plan with Alameda to assist fulfill client liquidity demands during "this volatile era," according to its website. The rescue provided Voyager with $200 million in cash as well as 15,000 BTC in revolving loans and an unknown USDC value.

“Voyager Digital Holdings, Inc. (“VDH”), has entered into a definitive agreement with Alameda Ventures Ltd. (“Alameda”) related to the previously disclosed credit facility, which is intended to help Voyager meet customer liquidity needs during this dynamic period.”

The bailout was subject to various restrictions, including the corporation receiving fresh money within 12 months. The most important of these was a $75 million withdrawal restriction over any 30-day rolling period.

The article further stated that the corporation had requested a $25 million USDC repayment by June 24 and the outstanding balance by June 27.

“Neither of these amounts has been repaid, and failure by 3AC to repay either requested amount by these specified dates will constitute an event of default.”

Will Voyager go through with it?

Voyager reported that it is still fulfilling client purchases and withdrawals, thus far utilizing $75 million of the Alameda credit line.

Voyager CEO Stephen Ehrlich went on to say that the firm is striving to enhance its balance sheet and is looking at various ways to address liquidity needs.

“We are working diligently and expeditiously to strengthen our balance sheet and pursuing options so we can continue to meet customer liquidity demands.”

In a recent tweet, 8Blocks Capital CEO Danny Yuan made similar claims, saying 3AC had ghosted him.

13) FWIW, for the most part, they aren't speculating with clients' money like Celsius was (maybe a thread another day about our dealings with them in 2019), however, here they did use our funds (~1m USD) to answer their margin calls.
— Danny (@Danny8BC) June 16, 2022

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