Crypto hedge fund Three Arrows Capital has defaulted on a loan worth more than $670 million.
According to a CNBC report, digital asset brokerage firm Voyager Digital issued a notice on Monday morning stating that the fund failed to repay a $350 million loan in the dollar-pegged stablecoin, USDC, and 15,250 Bitcoin, worth about $323 million at today’s prices.
“We are working diligently and expeditiously to strengthen our balance sheet and pursuing options so we can continue to meet customer liquidity demands,” said Voyager CEO Stephen Ehrlich.
Three Arrows Capital is considered a prominent crypto hedge fund.
This represents a new set-back for digital currencies in consecutive weeks where the crypto market has erased hundreds of billions of dollars in value. The overall crypto market cap is worth about $950 billion, after peaking at $3 trillion in Nov. 2021.
Besides losing value and particular collapses in some cryptos, the digital currencies industry is still under the spotlight. Just last week hackers stole $100 million worth in cryptocurrency from Horizon, the latest heist affecting investors.
The lates theft comes after the Justice Department announced they were cracking down on global cybercrime.
