NEW YORK (BLOOMBERG) – Crypto broker Voyager Digital said it has issued a notice of default to Three Arrows Capital, the troubled crypto hedge fund, on a loan worth roughly US$675 million based on Bitcoin's price on Monday (June 27).

Three Arrows has failed to make the required payments on its loan of 15,250 Bitcoin and US$350 million USD Coin, Voyager said in a statement.

The company intends to pursue recovery and is in talks on legal remedies as it weighs options to meet customer demands. It has hired Moelis & Company as its financial adviser in the process.

New York-based Voyager, which offers crypto trading and staking – a way of earning rewards for holding certain cryptocurrencies – and yield products, is among the companies that have taken a hit in the fallout from Three Arrows' liquidity problems.

Earlier this month, Voyager secured credit lines from the investment arm of Alameda Research, the trading firm founded by Mr Sam Bankman-Fried, as concerns about Three Arrows and the crypto sector rattled the market.

Voyager said it has accessed US$75 million of the credit line from Alameda and may further dip into the funds as needed to facilitate customer orders and withdrawals.

"We are working diligently and expeditiously to strengthen our balance sheet and pursuing options so we can continue to meet customer liquidity demands," said Mr Stephen Ehrlich, Voyager's chief executive said in the statement.

Three Arrows' law firm, Solitaire, did not immediately respond to a request for comment while Voyager declined to comment further.

Shares of Voyager, listed on the Toronto Stock Exchange, are down 95 per cent this year.