Crypto exchange Blockchain.com stands to lose $270 million it lent to the liquidated crypto hedge fund Three Arrows Capital (3AC), according to a report from CoinDesk on Friday.
The news was revealed in a shareholder letter written by Blockchain.com CEO Peter Smith, ווער האט דאס געשריבן “Three Arrows is rapidly becoming insolvent and the default impact is approximately $270 million worth of cryptocurrency and US dollar loans from Blockchain.com. "
3AC, which is now subject to a liquidation order in the British Virgin Islands, was once one of crypto’s largest hedge funds, boasting billions of dollars under management. The firm collapsed in recent weeks in response to a combination of poor risk management and declining crypto prices, with many crypto lenders impacted by the fallout.
In the letter, Smith pointed out that 3AC had borrowed and repaid over $700 million worth of cryptocurrency to Blockchain.com throughout the four years that the firm had been a counterparty. The letter, dated June 24, also specified that Blockchain.com “remains liquid, solvent and our customers will not be impacted.”
א מעלדונג ארויס דורך Bloomberg last week specified that Blockchain.com and Deribit were among the creditors that sought the liquidation of Three Arrows in the British Virgin Islands. In the report, a Blockchain.com spokesperson said 3AC had “defrauded the crypto industry,” and that the company intended “to hold them accountable to the fullest extent of the law.”
Blockchain.com is one of the longest-running companies in the cryptocurrency industry and one of the earliest developers of web browser wallets.
Asked about the CoinDesk report, a representative from Blockchain.com told The Block that they had nothing to add.
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Source: https://www.theblock.co/post/156585/blockchain-com-stands-to-lose-270-million-on-three-arrows-capital-loans?utm_source=rss&utm_medium=rss