Three Arrows Capital (3AC), a prominent hedge fund based in Singapore that deals in cryptocurrency, has defaulted on a loan worth more than $670 million.
Crypto broker Voyager Digital issued a notice of default on Monday, saying the 3AC fund had failed to make required payments on a loan of 15,250 bitcoin (about $324 million) and $350 million worth of the USDC stablecoin.
Voyager said it intended to pursue recovery from 3AC and was in discussions with its legal advisors in regard to possible legal remedies.
It is exploring options including a sale of assets and a bailout by another firm, the Wall Street Journal reported last week.
The latest news is symptomatic of the turmoil that has rocked the crypto sector since the collapse of the TerraUSD stablecoin last month.
Singapore-based 3AC is one of the higher profile crypto companies to have run into difficulties following the market selloff, which has seen the overall crypto market cap drop to about $950 billion – a third of its peak of around $3 trillion last November.
3AC did not immediately respond to a request for comment.
Voyager said on Monday that it continues to operate and fulfil customer orders and withdrawals, though a statement on the company’s website last week said it had lowered its daily withdrawal limits to $10,000 from $25,000.
Voyager said in Monday’s statement it had accessed US$75 million of a revolving line of credit previously made available by VC fund Alameda Ventures.
Almeda, which is FTX founder Sam Bankman-Fried’s quantitative trading firm, has offered Voyager a US$200 million cash and USDC revolver and a 15,000 BTC revolver.
• Reuters with additional editing by Jim Pollard
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