Trading platform Voyager Digital takes a loan from trading firm Alameda Research because of its exposure to crypto venture capital firm Three Arrows Capital (3AC).
In a press release by Voyager Digital, the firm announced that it has borrowed 15,000 Bitcoin (BTC) from Alameda to cover the losses that came from its exposure to the 3AC contagion.
Voyager also noted that the company might issue a notice of default to 3AC if they fail to pay its loans from Voyager. The firm revealed that 3AC owes the Voyager 15,250 BTC and $350 million USD Coin (USDC) and noted that they have sent requests for repayment to 3AC.
The repayment requested involves $25 million to be paid on Friday and payment of the total balance on Monday. If 3AC fails to pay either of the amounts specified, it will be considered an event of default.
Apart from these, Voyager noted that it hopes to pursue legal action to recover its funds from 3AC and is currently working with the company’s lawyers to find potential legal remedies. Voyager also highlighted that, at this point, they are unable to measure the amount that can possibly be recovered from 3AC.
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Earlier in June, Alameda Research founder Sam Bankman-Fried noted that the firm is working to prevent the spread of the bear market contagion within the crypto ecosystem. In an interview, Bankman-Fried said that he wants to do what he can to help the crypto ecosystem grow and thrive.
Last week, 8 Blocks Capital’ Danny Yuan called out to platforms that are in possession of 3AC funds to freeze their accounts. Because of rumors of the company’s insolvency, Yuan noted that freezing 3AC funds may help with recovery after future legal proceedings.