Trading platform Voyager Digital takes out a loan from trading firm Alameda Research due to its exposure to crypto venture capital firm Three Arrows Capital (3AC).
In a press release from Voyager Digital, the firm announced that it had borrowed 15,000 Bitcoin (BTC) from Alameda to cover losses resulting from its exposure to the 3AC contagion.
Voyager also noted that the company could issue a notice of default to 3AC if it fails to repay its loans from Voyager. The company disclosed that 3AC owed Voyager 15,250 BTC and $350 million in coins (USDC) and noted that it had sent reimbursement requests to 3AC.
The requested refund is for $25 million to be paid on Friday and payment of the full balance on Monday. Failure by 3AC to pay any of the specified amounts will be considered an event of default.
Apart from these, Voyager said it hopes to pursue legal action to recover its funds from 3AC and is currently working with the company’s attorneys to find possible legal remedies. Voyager also pointed out that at this point they are unable to measure how much can possibly be recovered from 3AC.
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Earlier in June, Alameda Research founder Sam Bankman-Fried noted that the company is working to prevent bear market contagion from spreading through the crypto ecosystem. In an interview, Bankman-Fried said he wanted to do what he could to help the crypto ecosystem grow and thrive.
Last week, 8 Blocks Capital’s Danny Yuan called on platforms in possession of 3AC funds to freeze their accounts. Due to rumors of the company’s insolvency, Yuan noted that freezing 3AC’s funds could help recovery from future legal proceedings.