Crypto broker Voyager Digital says its exposure to Three Arrows Capital consists of 15,250 bitcoin and $350M USDC, and “may issue a notice of default” to 3AC

CoinDesk : Source: PR Newswire .

CoinDesk 2022-06-23

Context & Ripple Effects

Voyager had just secured a $485M Alameda-backed loan facility, giving it an additional liquidity source before its exposure to Three Arrows Capital became the central issue. The disclosure makes the lender’s reliance on a major borrower visible rather than merely a balance-sheet concern.

The warning was the opening stage of a rapid escalation: related coverage records Voyager’s subsequent default notice to 3AC and, later, its collapse after the borrower failed to repay. That sequence matters because Voyager’s deposit-yield model depended on lending crypto assets onward.

First-order effects

Voyager’s disclosed position puts repayment by Three Arrows Capital at the center of its near-term liquidity position, while 3AC faces a potential formal default process.
Voyager’s customers are immediately exposed to the consequences of a lender whose ability to honor obligations is tied to recovery from a large borrower.

Second-order effects

Voyager subsequently issued a default notice and drew $75M from its Alameda Research credit line, shifting the problem from disclosed exposure to an active liquidity response.
The failed repayment undermined the lending model that generated interest on customer deposits, leading to the collapse described in later coverage rather than containing losses at the borrower level.

Third-order effects

The episode illustrates how crypto lenders’ yield offerings can concentrate credit risk in a small set of borrowers, making borrower distress a customer-liquidity event.
Later allegations that Voyager hid its financial condition place disclosure and client-protection practices alongside underwriting as structural pressure points for crypto lending.

The trend: Crypto lending was exposing how yield products built on rehypothecated customer assets can turn concentrated borrower defaults into platform-wide liquidity crises.

Discussion

@tier10k @tier10k on x
[DB] Voyager's exposure to 3AC consists of 15,250 BTC and $350 million USDC, 3AC has not repaid requested amounts. Voyager: Failure to repay by June 27 will constitute an event of default Voyager intends to pursue recovery from 3AC
@thestalwart Joe Weisenthal on x
Incredible chart of Voyager, the crypto company that lent hundreds of millions to 3AC https://twitter.com/...
@ben_mckenzie Ben McKenzie on x
😳 https://www.prnewswire.com/...
@mattysino Matthew Graham on x
Jesus https://www.prnewswire.com/... https://twitter.com/...
@mikeburgersburg @mikeburgersburg on x
🚨🚨🚨"Voyager concurrently announced that its operating subsidiary, Voyager Digital, LLC, may issue a notice of default to Three Arrows Capital ("3AC") ...Voyager's exposure to 3AC consists of 15,250 BTC and $350 million USDC." https://twitter.com/...
@kylesgibson @kylesgibson on x
“So there's a box, right? And people put money in the box, and then other people see that and they go, 'Wow, that must be a great box. Let's put more money into it.” and this process is repeated indefinitely..." https://twitter.com/...
@cryptokaleo @cryptokaleo on x
“We take risk management very seriously, and safeguarding customer assets is our number one priority. We have never engaged in DeFi Lending activities and have no exposure to stETH” This is an outright lie by Voyager. https://twitter.com/... https://twitter.com/...
@bowtiednightowl @bowtiednightowl on x
I am really looking forward to the day we can see the total amount of unsecured debt these companies collectively gave to a hedge fund https://twitter.com/...
@awawat_trades @awawat_trades on x
5 days to make back 15k BTC sounds tight. Maybe a job for @scooterxbt https://twitter.com/...
@bowtiedbull @bowtiedbull on x
Another one gets rekt. Please get your money out of there. too much risk. https://twitter.com/... https://twitter.com/...
@bneiluj Julien Bouteloup on x
Voyager's exposure to 3AC is >$600m? 😳 sounds like 3AC had more than one string to his bow ffs. They are bringing entire space down with their fail. https://twitter.com/...
@niubi Bill Bishop on x
three arrows looking worse and worse https://twitter.com/...
@punk9059 @punk9059 on x
Voyager has $720,000,000 of loans to 3AC and might be the next ship to sink. Stock down 50%. https://www.google.com/... https://twitter.com/...
@kadhim @kadhim on x
Crypto lender Voyager reveals it is looking at a possible loss of $650m on loans to collapsed crypto fund Three Arrows Capital (15,250 BTC plus 350m USDC) Says it has secured a credit line from @SBF_FTX's Alameda https://www.prnewswire.com/...
@kadhim @kadhim on x
Just over a week ago https://twitter.com/...
@kadhim @kadhim on x
Voyager is now down 54% https://twitter.com/...
@kadhim @kadhim on x
Voyager shares crash on the market open, down 36% Note the release on their exposure to Three Arrows made no mention of collateral https://twitter.com/...
@mdudas Mike D🫡das on x
my god, 3AC is in default on $660m in borrow from @investvoyager https://twitter.com/...
@alexhern @alexhern on x
If I'm reading this right, Voyager's cash-on-hand was barely a quarter of *one loan* it made to *one borrower*, somebody good at risk management help me budget this
@alexhern @alexhern on x
@SBF_FTX Turns out crypto does in fact have a lender of last resort and its name is Sam Bankman-Fried
@alexhern @alexhern on x
ersatz crypto bank Voyager is owed around $650m by crypto hedge fund 3AC, and has signed a $500m loan with @SBF_FTX's Alameda Ventures to protect customer assets from a bank run https://www.prnewswire.com/...
@mikeburgersburg @mikeburgersburg on x
As of 9/31/21, Voyager owed 25,023 Bitcoin and $384 million $USDC to its customers. They lost 15k Bitcoin and $350 mil USDC to 3AC... https://twitter.com/... https://twitter.com/...
@tree_of_alpha @tree_of_alpha on x
https://twitter.com/... https://twitter.com/...
@kirbylarp @kirbylarp on x
CeFi takes another major L https://twitter.com/...
@kamikaz_eth @kamikaz_eth on x
How does an exchange make massive unsecured loans like this to third parties? This is so weird The tragedy is that Alameda is bailing them out - companies this stupid should be allowed to die https://twitter.com/...
@adamscochran Adam Cochran on x
Woah, first detailed number we've got from a provider. $350M owed to one entity. Clearly massive amounts outstanding. https://twitter.com/...
@keubiko @keubiko on x
So funny that it wasn't just actual dollars that morons pumped into Bitcoin, but the price went up because of literal printing of vapor coins. As these crypto dildos rail against the Fed. 🤌🤌🤌🤌 https://twitter.com/...
@theskyhopper @theskyhopper on x
Holy fuck. If it's real. https://twitter.com/...
@staffordphilip Philip Stafford on x
Voyager hit as Three Arrows fails to meet repayments “The Company is unable to assess at this point the amount it will be able to recover from 3AC.” https://www.prnewswire.com/...
@tier10k @tier10k on x
~$663mln of 3AC exposure “Voyager has $152 million cash and owned crypto assets on hand” Not great https://twitter.com/...

Chronicles