Blockchain.com “remains liquid, solvent and our customers will not be impacted,” wrote CEO Peter Smith in a letter to shareholders.
Cryptocurrency exchange Blockchain.com is likely to lose $270 million in lending to Three Arrows Capital, an over-leveraged hedge fund currently under liquidation in the British Virgin Islands. “Three Arrows is rapidly becoming insolvent and the default impact is approximately $270 million worth of crypto and U.S. dollar loans from Blockchain.com,” said Blockchain.com CEO Peter Smith. wrote in a letter to shareholders, reviewed by CoinDesk. Three Arrows Capital, which has billions of dollars in assets under management earlier this year, has exploded thanks to a combination of falling crypto prices and poor risk management, with many crypto lenders being featured. display. Smith pointed out that Three Arrows has borrowed and paid out more than $700 million in crypto over the four years the company has been a Blockchain.com partner. Smith also emphasized that Blockchain.com "remains in liquid state, solvents and our customers will not be affected", in the letter dated June 2
. About a week ago, Blockchain.com and derivatives exchange Deribit were reportedly among the creditors promoting the liquidation of Three Arrows, also known as 3AC. In a Bloomberg News article, Smith said 3AC has "scammed the crypto industry," adding that the company intends to "hold them accountable to the fullest extent of the law."
A person familiar with Blockchain.com's finances told CoinDesk that the company is in good shape to weather the losses. "We don't feel any kind of strain on the organization," the person said. Founded in 2011, Blockchain.com is one of the oldest startups in the crypto industry and has developed one of the first blockchain explorers and one of the web browser wallets. firstly. This year, the Luxembourg-based company became the first crypto sponsor to the Dallas Cowboys of the National Football League in the United States.
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