Reported Coindesk, Voyager Digital received a one-page net asset value statement from Three Arrows Capital (3AC) just weeks before the hedge fund filed for Chapter 15 bankruptcy in New York on July 1 2022, according to court documents filed on Tuesday.
The document, dated May 13, 2022, showed 3AC's NAV to be just under $2.4bn. A single due diligence call was conducted between the two firms on February 28, 2022
Voyager, which filed for bankruptcy in July 2022, reported a $654m loan to 3AC that accounted for almost 58% of its loan portfolio.
The filings reveal that Voyager Digital carried out little due diligence with regard to Three Arrows Capital, whose failure triggered the collapse of other crypto firms. The court documents say that the Voyager due diligence team did not have 3AC’s income statements, cash flow statements, or balance sheet and did not do any stress testing of 3AC’s liquidity.
Under its proposed bankruptcy plan, Voyager's assets are set to be sold to the US wing of crypto exchange Binance, although this sale is subject to scrutiny by the Securities and Exchange Commission (SEC).
Three Arrows Capital
