Published , by Donovan Erskine
Published , by Donovan Erskine
Three Arrows Capital, commonly referred to as 3AC, is one of the largest cryptocurrency-focused hedge funds. The group has been in hot water, as it was rapidly approaching the deadline to pay off loans to Voyager Digital totaling more than $670 million. Now, that deadline has passed, and 3AC has defaulted on the loan. The ramifications could have a reverberating effect throughout the crypto world.
This morning, Voyager Digital provided a market update where it confirmed that it had issued a notice of default to Three Arrows Capital for failing to pay its loan by the established deadline. Voyager had loaned the hedge fund 15,250 Bitcoin (BTC) and $350 million USD Coin (USDC). "We are working diligently and expeditiously to strengthen our balance sheet and pursuing options so we can continue to meet customer liquidity demands," said Stephen Ehrlich, Chief Executive Officer of Voyager.
One of the biggest crypto hedge funds defaulting on such a large loan can only spell out more woes for the cryptocurrency market, which hasn’t been seeing its best days as of late. In November of last year, the crypto market cap peaked at $3 trillion. Today, it sits at roughly $950 million. Both Bitcoin (BTC) and Ethereum (ETH), two of the most prominent cryptocurrencies, are trading down, as we learned via CNBC’s report.
With Three Arrows Capital defaulting on a massive $670 million loan, it likely won’t be long until we start seeing the ramifications not only on the hedge fund, but the crypto market as a whole. As the world of cryptocurrency continues to transform, you can expect to read the most interesting stories right here on Shacknews.