By Adriano Marchese


Voyager Digital Ltd. has issued a notice of default to ailing hedge fund Three Arrows Capital for missing payments and said it will seek to recover what it is owed.

On Monday, the cryptocurrency platform said that its Voyager Digital LLC operating subsidiary issued the notice and that it is in discussions with the company's advisors as to its available legal recourses.

Voyager's exposure to 3AC consists of 15,250 BTC and $350 million USDC, a U.S. dollar-pegged stablecoin. At bitcoin's current market price of US$21,247.60 per coin, 3AC would owe Voyager about $674 million.

On Wednesday, Voyager warned that it may need to issue the notice to 3AC and said it signed an agreement with trading firm Alameda Ventures Ltd. for a $200 million loan to safeguard its customers' assets from a crypto market-wide liquidity crisis.

The company said that it continues to operate and fulfill customer transactions, and has about $137 million in cash and owned crypto assets on hand as of June 24 on top of access to the loan from Alameda.

The company's exposure to 3AC has added to the weight of an already-struggling cryptocurrency space, with its shares down more than 95% at C$0.77 since the beginning of the year.

"We are working diligently and expeditiously to strengthen our balance sheet and pursuing options so we can continue to meet customer liquidity demands," Voyager Chief Executive Officer Stephen Ehrlich said.


Write to Adriano Marchese at adriano.marchese@wsj.com


Corrections and Amplifications

This article was corrected at 8:44 a.m. ET because it incorrectly said the price of bitcoin was US$27,466.10 per coin, and that the total owed by 3AC was US$768 million. Voyager Digital Ltd. is pursuing recovery of around C$674 million from Three Arrows Capital. At bitcoin's current market price of US$21,247.60 per coin, 3AC would owe Voyager about US$674 million.

(END) Dow Jones Newswires

06-27-22 0831ET