Three Arrows Capital Faces $650M Debt Default: Crypto Lending Firm in Crisis

The crypto lending market is facing turbulence as Three Arrows Capital (3AC), a prominent crypto hedge fund, struggles with a massive debt. Voyager Digital has issued a default notice against Three Arrows Capital for failure to repay a loan worth more than $650 million.

After rumors were floating on the internet, Three Arrows Capital (3AC) was served with a default notice by Voyager Digital. The notice is regarding failing to repay a debt. Crypto-asset broker Voyager Digital has issued a notice of default to cryptocurrency-focused hedge fund Three Arrows Capital Ltd (3AC) after the financially struggling firm failed to meet its obligations.

Voyager Digital seeks to recover roughly $657 million allegedly loaned to Three Arrows Capital (3AC) as analysts say its ability to do so could determine its own future.

On Tuesday, the distressed crypto hedge fund was ordered into liquidation by a Virgin Island court in response to mounting lawsuits from creditors demanding repayment. The implications of 3AC's potential insolvency are rippling through the crypto market, raising concerns about systemic risk.

Voyager Digital has engaged Moelis as they seek to navigate the complex situation and explore options for recovering the substantial debt owed by Three Arrows Capital.