Voyager Digital’s default notice to Three Arrows Capital (3AC) for failing to repay a $665 million loan highlights the escalating crisis in the cryptocurrency market. This action, coupled with Voyager’s own liquidity challenges, signifies a significant turning point in the industry. 3AC’s failure to meet its debt obligations involved a substantial amount of crypto assets, including 15,250 bitcoins and 350 million USDC. While Voyager continues normal operations while exploring legal options for recovery, this event has far-reaching implications for lending practices within the cryptocurrency market. Experts suggest heightened regulatory scrutiny in response to this incident, particularly regarding crypto loans’ risk management. The impact of this default on the broader market is substantial, with Voyager facing immediate liquidity pressures and leading to a suspension of trading activities. This event calls into question the stability and risks associated with volatile investments within the cryptocurrency sector.