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Clock ticking as Voyager Digital looks to collect Three Arrows debt

By Monte Stewart


Photo of ticking clock.
The clock is ticking as crypto lender Voyager Digital seeks payment on a $650m debt from hedge fund giant Three Arrows. - Photo: Getty Images

The clock is ticking as Canadian crypto lender Voyager Digital looks to collect on a huge loan to troubled hedge fund giant Three Arrows.

Toronto-based Voyager’s management served notice this week that crypto hedge fund operator Three Arrows might default on a $650m loan.

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Potentially huge loss

Facing a potentially huge loss, Voyager, which trades on the Toronto Stock Exchange, saw its share price nosedive in the aftermath of the announcement.

Voyager said in a press release that it requested a repayment of $25m by Friday and subsequently sought full repayment of the $650m by Monday.

“Neither of these amounts has been repaid, and failure by [Three Arrows] to repay either requested amount by these specified dates will constitute an event of default,” the company wrote in a notice to investors, adding that it is “unable to assess at this point the amount it will be able to recover.”


Company could seek bailout

In addition to offering loans, Voyager provides trading services. The company allows more than 100 digital coins, ranging from bitcoin (BTC) to shiba inu (SHIB) to horizen (ZEN), be traded on its app.

Last week, Three Arrows revealed that it could sell assets or seek a bailout from another company to ease its financial pressures. The company said it has also hired legal and financial advisors as it grapples with large losses.

Three Arrows has admitted to investing $200m in luna, which collapsed in May 2021 along with its sister coin terra. But Voyager is not in danger of folding – at least for now.

Alameda supplies funds

Sam Bankman-Fried’s quantitative trading firm Alameda has agreed to provide Voyager with revolving loans valued at $200m in cash and the USDC cryptocurrency, and 15,000 bitcoin, according to a Voyager press release and US regulatory documents.


0.54 Price
+2.970% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01192


1,644.92 Price
-0.730% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 5.40


27,697.85 Price
+1.100% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 85.00


0.06 Price
-0.330% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012166

Alameda agreed to provide the loan facilities to a Voyager subsidiary, US regulatory documents show. Voyager will serve as the debt’s guarantor. Cryposlate noted that Bankman-Fried, a 30-year-old billionaire with many crypto holdings, also has an ownership stake in Voyager after purchasing 14,957,265 last week.

Withdrawal limit lowered

Voyager Digital has also lowered its withdrawal limit to $10,000 from $25,000, according to the company's website.

Meanwhile, Bankman-Fried’s behemoth crypto exchange company NTX has also agreed to provide a $250m revolving credit facility to troubled crypto lender BlockFi.



NTX takes duty seriously

Bankman-Fried confirmed the loan on Twitter.

“We take our duty seriously to protect the digital asset ecosystem and its customers,” he tweeted.

According to several reports, BlockFi suffered large losses when it liquidated its Three Arrows holdings. On Friday, the Wall Street Journal reported that FTX is in talks to acquire a stake in BlockFi.

Markets in this article

Bitcoin / USD
27697.85 USD
301.25 +1.100%
Shiba Inu / USD
0.00000744 USD
-0.00000002 -0.280%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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