Voyager gave two loans to Three Arrows Capital, and from recent news, the high-profile crypto Hedge fund Three Arrows Capital has failed to repay both loans, which were worth a whopping $670 million.
Voyager came out saying they intend to pursue the recovery of the loans from Three Arrows Capital, and in the meanwhile, they will continue to operate and fulfill other customer orders and withdrawals.
"We are working diligently and expeditiously to strengthen our balance sheet and pursuing options so we can continue to meet customer liquidity demands," said Voyager CEO Stephen Ehrlich.
Originally, Three Arrows Capital was considered a great firm, but it collapsed after numerous highly leveraged bets went downhill. The founders had borrowed aggressively and made massive investments in Celsius and Solana, but both of those have also crashed since the investments were first made.
In addition to this, Voyager has been extremely vulnerable. It's now down 95% on the year, and the issue with Three Arrows Capital is causing them to seek other options.
Overall, the collapse of Three Arrows Capital has caused several negative side effects throughout the crypto industry, and Voyager made an announcement saying that plan to issue a notice of default if Three Arrows Capital doesn't repay the loan.
As a response to Voyager's announcement, Three Arrows Capital stated that they're scouring for rescue from other firms as well as seeking lines of credit as they sell the bulk of their assets in order to get the money together for Voyager.