Crypto exchange Voyager Digital has issued a notice of default to hedge fund Three Arrows Capital (3AC) for its failure to pay its 15,250 Bitcoin (BTC) and 350 million USD Coin (USDC) loan disclosed in a previous statement.
In a market update by Voyager, the exchange noted that it's currently exploring "legal remedies" that are available with its advisors and is aiming to pursue the recovery of its funds from 3AC.
Additionally, Voyager disclosed that the firm has $137 million in cash and crypto as of June 24, 2022. The company also assured its users that the platform is continuing to operate and fulfill their users' orders and withdrawals.
Apart from these, the company has employed global investment bank Moelis & Company as its financial advisers to help its efforts to stabilize amid its exposure to 3AC. According to Voyager CEO Stephen Ehrlich, the team is currently working to strengthen its balance sheets and pursuing other options to continue to comply with the liquidity demands of its users.
Voyager notes that it has access to the $500 million funds from its loan agreement with trading Alameda Research. At the moment, the firm said that it accessed $75 million worth of funds from Alameda.
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Last week, Voyager gave 3AC deadlines for the repayment of its BTC and USDC loans. The firm requested $25 million to be paid last Friday and also requested the payment of the total balance Monday. However, despite the deadlines given, 3AC was unable to comply.
On Wednesday, Voyager's share price plummeted by 60% as crypto stocks went on a downward dive. The next day, Voyager reportedly cut its withdrawal amount to $10,000 amid its current issues with 3AC.