HomeBlockchainBlockchain NewsBlockchain.com is facing a $270 million hit

Blockchain.com is facing a $270 million hit

Blockchain.com, a cryptocurrency exchange, stands to lose $270 million as a result of its lending to Three Arrows Capital, an over-leveraged hedge fund that is currently subject to a liquidation order in the British Virgin Islands.

Three Arrows is swiftly becoming insolvent, and the default brunt is approximately $270 million in cryptocurrency and US dollar loans from Blockchain.com, said Peter Smith, CEO of Blockchain.com, in a letter to shareholders acquired by CoinDesk.

Three Arrows Capital, which had billions of dollars in assets under management earlier this year, has imploded due to a combination of falling crypto prices and poor risk management, exposing many crypto lending businesses.

Smith stated that in the four years that Three Arrows has been a counterparty of Blockchain.com, the company has borrowed and repaid over $700 million in cryptocurrency. In the letter dated June 24, Smith also stated that Blockchain.com remains liquid and solvent, and our customers will not be impacted.

About a week ago, it was reported that Blockchain.com and derivatives exchange Deribit were among the creditors pushing for the liquidation of Three Arrows, also known as 3AC. Smith told Bloomberg News that 3AC had swindled the crypto industry and that the company intended to hold them responsible to the fullest extent of the law.

According to a person familiar with Blockchain.com’s finances, the company is in good enough shape to overcome the losses.

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