Voyager in Turbulent Seas, Takes $75 Million Loan to Stay Afloat

Source : coinquora.com

Market News

    • Voyager depends on $75 million from an Alameda-issued credit line to process limited withdrawals.
    • The crypto brokerage firm has been in hot water since 3AC’s crash.
    • Voyager has also issued a notice of default to 3AC for failing to meet loan deadlines.

According to reports, crypto brokerage firm Voyager is now relying on $75 million from an Alameda Research-issued credit line to process limited withdrawals and is seeking options to recover the funds.

Voyager Digital, the crypto broker firm, stated that it has issued a notice of default to Three Arrows Capital (3AC) on a loan worth $675 million (based on Bitcoin’s current price). This notice was issued following 3AC’s failure to meet the loan deadline. The company intends to pursue recovery and is now engaging in legal discussions.

Voyager is one of the many companies that are facing serious financial difficulties as a result of 3AC’s liquidity problems. At present, it has secured credit lines from the investment arm of Alameda Research LLC. This is the trading firm founded by Sam Bankman-Fried (SBF).

Voyager has stated it has accessed $75 million of the credit line from Alameda and it may further dip into the funds as needed to facilitate customer orders and withdrawals. Withdrawals on Voyager are still limited at the moment.

In a statement to the press, Stephen Ehrlich, Voyager’s chief executive, said:

We are working diligently and expeditiously to strengthen our balance sheet and pursuing options so we can continue to meet customer liquidity demands.

The crypto market is currently in one of the worst slumps in its history. Larger macroeconomic trends, such as global inflation and rising central banks interest rates, have also influenced the market. However, the biggest reason for 3AC’s present condition is the crash of Luna which it had heavily invested in.

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