Cryptocurrency exchange and wallet provider Blockchain.com is losing $270 million it previously lent to hedge fund Three Arrows Capital (3AC).
The company “remains liquid, solvent, and our customers will not be affected,” Blockchain.com CEO Peter Smith wrote in a letter he recently sent to shareholders. This after the founders of 3AC declared the company bankrupt, according to publication from CoinDesk.
the hedge fund would have collapsed due to falling cryptocurrency market pricescombined with poor risk management, leaving several companies in the sector exposed, as shown by CriptoNoticias in one of its notes.
Blockchain.com also provides lending and custody services to financial institutions. Previously, Together with Deribit and other companies, they demanded to liquidate Three Arrows Capital. pointing out in a Virgin Islands Court that the hedge fund had “defrauded the cryptocurrency industry,” as reported Bloomberg.
Deribit, whose parent company has Three Arrows as a shareholder, has said on Twitter that he remains financially healthy despite having net debt that he sees as potentially distressed.
But the financial problems of Three Arrows have also affected other companies such as cryptocurrency lender Voyager Digital Ltd.which last week filed for bankruptcy and took the decision to freeze the assets of its clients.
Three Arrows’ assets under management were estimated to be around $10 billion in March, according to blockchain analytics firm Nansen. A spokesperson for the fund told the Wall Street Journal earlier this month that it had roughly $3 billion in assets under management in April before the market crash.
In any case, what they are asking for companies related to 3AC is that all fund assets be liquidated immediatelyso that payment obligations are met and thus avoid liquidity problems of other platforms.
