Blockchain.com is at risk of losing US$270 million loaned to crypto hedge fund Three Arrows Capital (3AC) which recently filed for bankruptcy, CoinDesk reported.
See related article: Three Arrows Capital collapse sends tremors through crypto industry
- “Three Arrows is rapidly becoming insolvent and the default impact is approximately [US]$270 million worth of cryptocurrency and U.S. dollar loans from Blockchain.com,” Peter Smith, chief of the crypto exchange, said in a letter to shareholders dated June 24, which was seen by CoinDesk.
- Smith added that Blockchain.com “remains liquid [and] solvent,” assuring customers won’t be impacted by the 3AC contagion.
- 3AC has borrowed and repaid over $700 million worth of cryptocurrency from Blockchain.com, Smith said.
- Three Arrows Capital filed for Chapter 15 bankruptcy in New York on July 1 after reportedly receiving liquidation orders from a British Virgin Islands court.
- Blockchain.com and crypto derivatives exchange Deribit reportedly told Bloomberg that the two creditors are cooperating with investigations into Singapore-founded 3AC.