3AC defaults on $674 million Voyager Digital loan

Voyager Digital (TSX: VOYG) issued a notice of default to Three Arrows Capital on Monday after the latter missed its deadline to repay a $674 million loan.

Why it matters: It's yet another bad sign for the crypto hedge fund that had a relatively clean reputation in the industry until a few weeks ago.

• It's also not a particularly good sign for Voyager Digital or 3AC's other creditors. In a press release, Voyager noted, "It is uncertain what amount Voyager will be able to recover from 3AC for non-payment."

Details: Voyager Digital has said 3AC owes it 15,250 bitcoins and $350 million in USDC stablecoins.

• It gave the hedge fund until June 24 to repay $25 million in USDC and until today to repay the full amount. Neither of those deadlines were met.
• Now Voyager is contemplating legal action, and may be considering some restructuring of its own, having retained Moelis & Co. as a financial adviser.
• Notably, options 3AC has been considering include asset sales and a bailout by other firms, per the WSJ. Voyager, meanwhile, got a credit line from Alameda Ventures totaling about $520 million.

The big question: There's already been a contagion effect from 3AC's failures. The question is how big the contagion will be.