Voyager announced today that its operating subsidiary, Voyager Digital, LLC, may issue a notice of default to Three Arrows Capital (3AC) for failure to repay its loan.
Voyager’s exposure to 3AC consists of 15,250 BTC and $350 million USDC. The Company made an initial request for a repayment of $25 million USDC by June 24, 2022, and subsequently requested repayment of the entire balance of USDC and BTC by June 27, 2022. Neither of these amounts has been repaid, and failure by 3AC to repay either requested amount by these specified dates will constitute an event of default.
Voyager intends to pursue recovery from 3AC and is in discussions with the Company’s advisors regarding the legal remedies available. The Company is unable to assess at this point the amount it will be able to recover from 3AC.
Earlier in June, Voyager Digital issued an update regarding certain orders the company received from the state securities divisions of several states.
These orders concern only one benefit of customer accounts permitting customers to earn rewards on their balances of certain crypto assets (“Voyager Earn Program”).
Since earlier announcements were published in March and April 2022, Voyager has received additional orders from California and South Carolina with similar concerns about the Voyager Earn Program. All but one state, Kentucky, continue to permit customers to participate in the Voyager Earn Program.
Voyager says it continues to engage in dialogue with several states in order to pursue an acceptable regulatory solution.