Prominent cryptocurrency hedge fund Three Arrows Capital has defaulted on a $670 million loan from digital asset brokerage Voyager Digital, which issued a notice stating the fund failed to repay a $350 million USDC and 15,250 BTC loan.

Sam Bankman-Fried’s cryptocurrency exchange FTX is said to be exploring whether it may be able to acquire Robinhood Markets, the app-based commission-free brokerage. Robinhood hasn’t received a formal takeover approach.

Physical futures cryptocurrency exchange CoinFLEX is set to issue a Recovery Value USD (rvUSD) token after halting withdrawals on its platform over the outstanding debt a high-net-worth customer owes the platform.

Top stories in the Crypto Roundup today:

• Crypto Hedge Fund Three Arrows Capital Defaults on $670 Million Loan
• FTX Said to Be Eyeing Robinhood Acquisition
• Crypto Exchange CoinFLEX to Issue Tokens After Freezing Withdrawals
• Chart of the Week: BTC Moving Average Convergence Divergence

Crypto Hedge Fund Three Arrows Capital Defaults on $670 Million Loan

Prominent cryptocurrency hedge fund Three Arrows Capital has defaulted on a $670 million loan from digital asset brokerage Voyager Digital, which issued a notice stating the fund failed to repay a $350 million USDC and 15,250 BTC loan.

Voyager has said it intends to pursue recovery from Three Arrows Capital, and will in the meantime keep on processing customers’ orders and withdrawals.

CEO of Voyager Digital, Stephen Ehrlich, was quoted saying that the firm is “working diligently and expeditiously to strengthen our balance sheet and pursuing options so we can continue to meet customer liquidity demands.”

Voyager said it has around $137 million in U.S. dollars along with crypto assets. The company also has access to a $200 million cash and USDC revolver, as well as a 15,000 BTC revolver from Alameda Ventures, Sam Bankman-Fried’s quantitative trading firm. Voyager has used $75 million out of the $500 million line of credit Alameda provided it.

FTX Eyeing Robinhood Acquisition

Sam Bankman-Fried’s cryptocurrency exchange FTX is said to be exploring whether it may be able to acquire Robinhood Markets, the app-based commission-free brokerage. Robinhood hasn’t received a formal takeover approach.

According to sources familiar with the matter, no final decision has been made and FTX could opt against pursuing the deal. In a statement, Bankman-Fried seemingly denied FTX plans on acquiring Robinhood, saying:

“We are excited about Robinhood’s business prospects and potential ways we could partner with them. That being said, there are no active M&A conversations with Robinhood.”

Bankman-Fried disclosed in May that a company he controls, called Emergent Fidelity Technologies, bought a 7.6% stake in Robinhood for about $648 million. FTX has been on the hunt for deals recently, acquiring Embed Financial Technologies earlier this month to enter the equity trading business.

Crypto Exchange CoinFLEX to Issue Tokens After Freezing Withdrawals

Physical futures cryptocurrency exchange CoinFLEX is set to issue a Recovery Value USD (rvUSD) token after halting withdrawals on its platform over the outstanding debt a high-net-worth customer owes the platform.

The exchange’s issuance of $47 million in tokens comes after an account on its platform went under during the recent market volatility. The company wrote:

"In normal circumstances, we would auto-liquidate a position that runs low on equity at prices that are prior to the zero-equity price.”

CoinFLEX described the customer as a “high integrity” individual with liquidity issues tied to a recent crash in crypto and non-crypto markets. The individual reportedly has “significant shareholdings in several unicorn private companies and a large portfolio.”

The exchange’s rvUSD tokes include a 20% annual percentage rate (APR) accrued which is paid daily in rvUSD. The exchange expects to resume withdrawals on June 30.

Chart of the Week: BTC Moving Average Convergence Divergence

In the past seven days, BTC/USD volumes have totaled $5.8 billion at a time in which Bitcoin’s price is hovering around $21,000, compared to less than $20,000 a week ago.

Bitcoin’s 12-day exponential moving average (EMA) has crossed above its 26day EMA, which is often used by traders to gauge market momentum.

EMA is a popular indicator that tracks the price of an asset over a period of time, with more significance being put on recent price movements.

State of the Crypto by Top Tier Exchange Volume

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