Cryptocurrency exchange Blockchain.Com reportedly could suffer $270 million losses in its loan to bankrupt crypto hedge fund Three Arrows Capital (3AC).
The news circulated a day after the 3AC filed for Chapter 15 bankruptcy as well as requesting protection from creditors in the United States. Currently, numerous crypto platforms are hunted down by contagion and liquidation due to the bloodbath in crypto.
“Three Arrows is rapidly becoming insolvent and the default impact is approximately $270 million worth of cryptocurrency and U.S. dollar loans from Blockchain.com,” Blockchain.com’s Chief Executive Officer Peter Smith said.
Recently, crypto exchange Genesis Trading unveiled that it was indeed exposed to hedge fund 3AC.
As the crypto market is on the verge of crypto winter, Three Arrows Capital was blasted off last week due to the downfall in the crypto market and poor risk management.
Smith revealed that 3AC has borrowed and repaid over $700 million worth of crypto loans in the last four years. He unveiled that Blockchain.com “remains liquid, solvent and our customers will not be impacted,” in the letter dated June 24.
Last week, Blockchain.com and derivative exchange Deribit were one of the major creditors that forced the liquidation of Three Arrows.
