Crypto broker Voyager Digital issued a notice of default on Monday to hedge fund Three Arrows Capital (3AC), for failing to service a loan worth about US$665 million.

See related article: Amid 3AC exposure, Voyager Digital cuts daily withdrawal limit

Fast facts

• Last week, Voyager said it had asked for US$25 million worth of USD Coin (USDC) to be repaid by June 24 and the remaining amount by Monday. 

• The loan consisted of US$350 million worth of USDC and 15,250 Bitcoin worth about US$315 million.

• Owing to 3AC’s exposure to the collapsed LUNA tokens, the firm is reportedly facing a severe liquidity crunch.

• 3AC failed to meet several margin calls and was liquidated by several lenders, including BlockFi and Genesis, according to a Financial Times report. 

• Voyager said that it will pursue recovery and is in discussions with 3AC’s advisors about legal measures.

• As of June 22, when Voyager cut its daily withdrawal limit to US$10,000 from US$25,000, the firm said it had US$137 million in cash and cryptocurrencies.

• Voyager has used US$75 million from a line of credit provided by Alameda Research to “facilitate customer orders and withdrawals.” 

• Voyager continues to operate and fulfill customer orders and withdrawals despite the liquidity pressure, a statement said. 

• “We are working diligently and expeditiously to strengthen our balance sheet and pursuing options so we can continue to meet customer liquidity demands,” Stephen Ehrlich, chief executive officer at Voyager, said.

See related article: SEC scrutinizing crypto lending by Celsius, Gemini, Voyager: reports