By now I am pretty sure we all knew that it was only a matter of time before 3AC issues were going to officially be public. Really up until today, there was always an off chance that they could have been saved somehow by someone and dodged the proverbial bullet however as that time has now come and gone. Being one of the largest crypto-focused hedge funds you would have thought that this collapse would have dramatically impacted the market however it has not even with Voyagers annocement.
While I do not think anyone can say "this is the exact reason" I believe that it's because everyone knew this was coming. Different platforms had liquidated 3AC's positions including BlockFi and Sam Bankman-Fried has issued lines of credit to both BlockFi and Voyager to cover the losses acquired in part due to their loans to 3AC. SBF even lent Voyager the exact amount that 3AC owed to the broker which is about as exact that you can get without publicly calling out the company.
Roughly a week and a half ago when 3AC was showing signs of distress Voyager informed them that on June 24th they needed to repay $25 million USDC of their outstanding loans and 3AC did not pay a penny of that call. The second part of the loan Voyager wanted repaid today Monday June 27th but yet again 3AC failed to meet this. Voyager though expected this as soon as the loan payment was not made 3AC was served with a notice that they more or less defaulted on their loan. By doing this Voyager has set itself up to being able to freeze the hedge funds wallets and assets to try and recoup their money.
What has caught me a little bit about this whole thing is that it is just Voyager so far that has served them. It is common knowledge that 3AC owed a lot of people a lot of money and while maybe the other loans are not due yet and 3AC might have been able to talk the companies out of margin calling them it is odd to me that only one company has moved forward with working to try and secure the money that they are owed or at least what they lent 3AC. This will be something that I will be paying attention to and looking for an answer for because it does not quite make sense in the grand scope of things. The companies that lended 3AC money have every right to work to secure whatever they can if 3AC is headed towards bankruptcy and a lot of this is going to be done on a first mover basis.
That being said I think Voyager has a great chance of if not being made whole coming very very close to it. With how 3AC works as long as Voyager doesn’t have to liquidate positions when they are down they could be set up to fly during the next bull run or even any sort of modest bump. It is known that 3AC was involved with LUNA though so whatever money was tied up in that investment really is gone. Both investors and developers seem to have turned their backs on the hard fork or really reboot project.
Depending on how crypto is able to handle this hedge fund collapse could be a huge right to regulators that crypto has really turned a corner and is “growing up”. If it becomes messy and a wreck would further add fuel to the fire that regulators seem to have to take a heavy handed approach to crypto. As bad as this is the lack of effect on the crypto markets today just showed that this was already expected as it hasn’t caused a price collapse. With that checked off now if this hedge fund can be liquidated without incident the crypto industry would secure a huge win in the face of a catastrophic event.
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