Blockchain.com stands to lose $270 million on Three Arrows loans: CoinDesk

Quick Take

  • Crypto exchange Blockchain.com is poised to lose $270 million on loans made to Three Arrows Capital, according to a report from CoinDesk. 
  • The news was revealed in a shareholder letter stating that Blockchain.com “remains liquid, solvent and our customers will not be impacted.”

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, who wrote that “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.”

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