Blockchain.com loses $270 million to 3AC’s bankruptcy

According to the company’s head Peter Smith, the platform remains liquid and solvent

10.07.2022 - 07:30

515

1 min

What’s new? Cryptocurrency exchange Blockchain.com lost $270 million due to a loan provided to the bankrupt hedge fund Three Arrows Capital (3AC). In a letter to its shareholders, which was sent before the bankruptcy, the company’s CEO Peter Smith warned that 3AC was “rapidly becoming insolvent,” so losses should be expected. However, he noted that the exchange “remains liquid, solvent” and this situation would not affect customers.

CoinDesk’s material

Blockchain.com situation. It was previously reported that the crypto exchange was among the creditors pushing for the liquidation of 3AC. The head of Blockchain.com also noted that Three Arrows had borrowed a total of $700 million from the exchange over the past four years.

The fund was ordered to be liquidated by a court in the British Virgin Islands on June 29 during the consideration of its insolvency proceedings. A few days later, 3AC filed for bankruptcy in the United States. The filing form prevents creditors from seizing 3AC’s assets in the States while the liquidation process is ongoing.

Author: