Prominent Crypto Company Goes Bankrupt, Defaults on a N278 Billion Loan
- A crypto hedge fund has capitulated to the wider industry collapse and defaulted on N278 billion loan
- Three Arrows Capital could not repay the more than $670 million it got from Voyager Capital which said the company could not loan
- Voyager stated that it plans to pursue a recovery from Three Arrows. In the short run, the firm said that it cannot continue to operate
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A major crypto hedge fund, Three Arrows Capital has defaulted on a loan worth more than $670 million, about N278 billion, CNBC said, quoting Voyager Digital which issued a notice on Monday, June 27, 2022.
Voyager Capital stated that the fund could not repay a loan of $350 million in the dollar-pegged stablecoin, the UDC and about 15,350 bitcoin, estimated at about $323 million going by current prices.
Source: Facebook
The crypto industry collapse continues
The company’s financial woes came after weeks of trouble in the crypto industry, which has wiped off hundreds of billions of dollars in value. Bitcoin and ether are on a slightly lower trajectory, still a long way to their all-time highs.
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However, the total market capitalization for the crypto industry is about 950 billion, a fall from around the $3 billion it was in November 2021.
Voyager stated that it plans to pursue a recovery from Three Arrows. In the short run, the firm said that it cannot continue to operate and meet its customers' orders and withdrawal requests.
Ripple effect may trail collapse
The company is trying to contain fear so as not to cause a wider panic in the crypto market.
On Friday, June 24, 2022, Voyager stated that it had around $137 million as well as crypto assets. The firm also stated that it could access $200 million cash and USDC resolver, including 15,000 bitcoin resolver from Alameda.
The founder of Alameda, Sam Bankman-Fried earmarked $500 million in financing to Voyager Digital, a crypto brokerage. Voyager has already pulled $75 million from that line of credit.
"Crypto crash has cost us fortunes but we still have hope", Nigerian traders lament
Legit.ng reported that the premier cryptocurrency, Bitcoin has lost 52 per cent of its value since the crypto crash began in March 2022.
Experts said the crash was partly due to the then rebounding US dollar and inflation which caused a lot of traders to embark on massive sell-offs, prompting many exchanges to halt withdrawals.
Many traders in Nigeria are counting their losses as the crash continues unabated and the market value of Bitcoin crashing even faster.
Source: Legit.ng
