Three Arrows Capital, a crypto hedge fund, in default on $665 million loan

The crypto broker Voyager Digital issued a notice of default Monday to the hedge fund Three Arrows Capital for failing to make the required payments on a loan worth more than $665 million, the latest sign of financial turmoil that has rocked the world of cryptocurrencies as the value of tokens across the market has plummeted.

Voyager said it intends to recover the funds, which was loaned as 15,250 bitcoin and $350 million in the stablecoin USDC, a digital token whose value is pegged to the dollar.

“We are working diligently and expeditiously to strengthen our balance sheet and pursuing options so we can continue to meet customer liquidity demands,” said Stephen Ehrlich, the chief executive of Voyager.

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The company said it in discussions with advisers to review legal remedies.

Three Arrows Capital did not immediately respond to a request for comment.

The loan…