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Controlling the chaos: Alameda Ventures bails out Voyager with $200 million and 15,000 BTC

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Apparently, Voyager Digital is out of the woods. The corporate bumped into money move issues when Three Arrows Capital did not repay an enormous mortgage to them. Welcome to a different chapter within the crypto demise spiral brought on by the Terra/Luna collapse. Who got here to the rescue this time? Sam Bankman-Fried’s different firm, Alameda Ventures. Is that this man bailing out crypto or taking full management of the trade?

In a current press launch, Voyager Digital introduced that it has “entered right into a definitive settlement with Alameda Ventures Ltd. relating to the beforehand disclosed credit score facility, which is meant to assist Voyager meet the liquidity wants of shoppers throughout this dynamic interval.” That is a technique of claiming it. The corporate acquired “200 million {dollars} in money and a USDC revolver and a 15,000 BTC revolver”.

As a reminder, it emerged yesterday that FTX, additionally owned by Bankman-Fried, bailed out BlockFi with $250 million. On the time, we described the scenario as follows:

“Over the previous few weeks, the crypto market has been on a downward development. The contagion impact of the Terra/Luna extinction occasion shook all companies, particularly those who supplied yield on cryptocurrency deposits like BlockFi and Celsius and hedge funds like Three Arrows Capital. The issues of those firms and the doable liquidation of belongings, in flip, threw the crypto market into much more turmoil.

The Voyager case matches that description completely.

Sam Bankman-Fried’s mortgage to Voyager, the situations

Rumors had been already flying. On June 16, analyst Dylan LeClair tweeted “Hypothesis right here, however in its quarterly report, Voyager had loaned $320 million to a Singapore-based entity named ‘counterpart b’. One has to marvel if ‘counterpart b’ was 3AC and in that case, what number of hits did Voyager take?” The reply got here quicker than anybody thought.

Within the press launch, Voyager defined the mortgage:

“As beforehand acknowledged, proceeds from the credit score facility are meant to be used to guard shopper belongings in mild of present market volatility and provided that such use is important. Along with this facility, as of June 20 As of 2022, Voyager had round $152 million in money and crypto belongings, together with round $20 million in money that’s reserved for purchasing USDC.

The mortgage is topic to “sure situations”, together with:

  • “Not more than US$75 million might be drawn over a rolling 30-day interval.”
  • “The corporate’s company debt needs to be restricted to roughly 25% of buyer belongings on the platform, much less $500 million.”
  • “Further funding sources have to be secured inside 12 months.”

Voyager Digital worth chart on OTC | Supply: TradingView.com

It is all concerning the Three Arrows Capital proper now

The press launch confirms the rumors, the Singapore-based entity named “counterparty b” was 3AC. “Voyager concurrently introduced that its working subsidiary, Voyager Digital, LLC, might problem a discover of default to Three Arrows Capital (“3AC”) for defaulting on its mortgage.” In a current article, our sister website Bitcoinist broke down the hedge fund scenario:

“The crypto fund had been straight within the crosshairs of the Luna crash with an publicity of over $200 million and assumed to succeed in $450 million. At first, the corporate appeared to bounce again from Luna’s collapse, however it will quickly be obvious that 3AC was in a extra perilous place than buyers realized.

Voyager’s scenario makes it much more apparent. “The corporate’s publicity to 3AC consists of 15,250 BTC and $350 million USDC.” So, the Alameda mortgage covers most of it. What did they’ve to present in return, although? Formally, “Alameda at the moment not directly owns 22,681,260 frequent shares of Voyager (“Widespread Shares”), representing roughly 11.56% of the excellent Widespread and Variable Voting Shares.” If all goes effectively, Voyager has nothing to fret about. Nonetheless, what if this isn’t the case?

Anyway, for many who love gossip, right here is the story informed by Voyager:

“The corporate made an preliminary request for a refund of $25 million USDC by June 24, 2022, then requested a refund of your entire stability of USDC and BTC by June 27, 2022. None of those quantities has been reimbursed and failure of 3AC. compensation of any of the requested quantities by such specified dates will represent an occasion of default. Voyager intends to pursue restoration with 3AC and is in discussions with the corporate’s advisers relating to obtainable authorized cures.

Solutions and Conclusions

The crypto trade as an entire is in a precarious scenario. And there’s a query on the middle of all of it, is Sam Bankman-Fried controlling the chaos or is he taking complete management of the trade?

Featured Picture by Sebastian Herrmann on Unsplash  | Charts by TradingView




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