Home
News
The scorching heat of the market crash resulted in the drying up of liquidations even of major firms like Three Arrow Capitals
On Monday, prominent crypto brokerage firm, Voyager Digital, issued a loan default notice to once eminent crypto hedge fund Three Arrow Capital. This came in the wake of the beleaguered hedge fund having failed in order to make the required payment of its loan amount of more than $650 million. The loan from Voyager Digital comprised about 15K bitcoin and USDC stablecoin worth $350 million.
Earlier losing its portion of positions in BlockFi and Genesis due to liquidity and failing to pay the loan amount came as the recent blow for the 3AC. Seems from Voyager’s statements that it will try hard to take out its funds from hedge fund Three Arrow Capital as it is reportedly in contact with the legal team to figure out the ways further.
Crypto brokerage firm has asserted that the default of 3AC has put no effect on the platform anyhow and it also mentioned that it had crypto and cash assets of worth $137 million under possession that will be enough to fulfill in hand orders. CEO of Voyager, Stephen Ehrlich, said that the firm is working carefully and promptly to make its balance sheet stronger and pursue its options to continue meeting customer liquidity demands.
The crypto market has already tumbled after seeing a massive decline in its market capitalization given the falling prices of every other cryptocurrency. From it’s all time high, the market capitalization of global crypto market has lost more than $2 trillion from its value. Such defaults of 3AC like major firms add to the already ongoing liquidity problem across the crypto space.
Recently, Voyager has put a limit over withdrawals of funds more than $10,000 by customers in the wake of anticipation of Three Arrow Capital defaulting on its loan. Earlier this week, the CEO and founder of Bahamian crypto exchange FTX, Sam Bankman Fried, provided a loan to Voyager Digital of overall $485 million, consisting of cash and crypto.
FTX has recently been seen to indulge in such activities where it has provided liquidity to other firms like BlockFi, whose loan amount was $250 million.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
