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.
Fast facts
“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.
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