The crypto trading app Voyager Digital Ltd. is ready to issue notice to Three Arrow Capital (3AC) for facing steep losses because of its failure towards repaying the loan. The collapse of Terraform Labs and LUNA stablecoin has led to a major cash crunch in hedge fund Three Arrow Capital. The hedge fund organization invested $200 million in stablecoin LUNA which vanished from the market in a matter of days.
According to the latest news by Bloomberg, Voyager’s exposure to 3AC includes 15,250 Bitcoins worth $370 million, and $350 million worth of USDC. Also, the shares of Voyager Digital Ltd. have plummeted to 52% according to NASDAQ statistics. Further, Sam-Bankman Fried is said to be the largest shareholder in Voyager with 12% stakes, according to Bloomberg data.
However, Voyager has secured a credit line of $200 million cash, USDC stablecoins, and 15,000 Bitcoin (BTC) from Alameda Research LLC. Whereas Alameda is a Bankman-led investment firm and liquidity provider. According to the sources, each credit line comes with a time limit and will expire on 31st December 2024. These facilities also carry an annual interest rate of 5%.
Based on the latest evaluations, Voyager still holds $152 million in cash, crypto assets, and $20 million cash for buying USDC stablecoins.
Moreover, it seeks repayment of debts by 3AC in two installments. According to the requests made by Voyager, the initial installment of repayment costs about $25 million USDC to be submitted by June 24. Whereas, the second installment of the balance amount of USDC and Bitcoin must be paid by June 27. Although 3AC has repaid neither of these installments till now. The company is still looking for the best possible negotiations through its legal team.