Blockchain.com in a miserable position as it loses 270 million dollars on the loan to 3AC!
Three Arrows Capital drowns many crypto companies in the market.
Credit: NFTgators
The market crash in May 2022 had a serious impact on the cryptocurrency market. But as the market crash continues, many companies file for bankruptcy or get involved. The current state of the market is pathetic and is filled with grief. The hedge fund company Three Arrows Capital, is one of the most affected companies in the market that has received massive blows from the market crash.
3AC had a huge value of amount in Terra’s USD. When Terra USD and its sister token Luna collapsed, the value of 3AC also began to decline. The value went down so much that the company was unable to clear the loans it provided with huge crypto institutions, and also became one of the main reasons for drowning them in the market.
Companies such as Voyager, BlockFi have all been negatively affected by 3AC’s market situation. BlockFi continued to suspend its activities and is in the process of being acquired by FTX. Voyager Digital also filed for Chapter 11 bankruptcy as the market situation for the crypto loan company worsens. Among such companies, Blockchain.com was also hit hard by 3AC’s bankruptcy announcement.
Blockchain.com’s misery!
According to a person with knowledge of the situation, Blockchain.com, a cryptocurrency exchange, could lose $ 270 million on its loans to the insolvent crypto hedge fund Three Arrows Capital (3AC). Following one of the most prominent explosions of the cryptocurrency crisis this year, Chapter 3 of Chapter 15 filed for bankruptcy a few days earlier, seeking protection from U.S. creditors.
According to a businesswoman, Blockchain.com CEO Peter Smith stated in a letter to shareholders that “Three Arrows is rapidly going bankrupt and the default effect is worth about $ 270 million with bitcoin and US dollar loans from Blockchain.com.”
Genesis Trading, a cryptocurrency exchange, also revealed earlier this week that it had exposure to 3AC, but that it has reduced losses as a result of the hedge fund not paying a margin.
Author’s analysis:
In my opinion, the situation is that 3AC is miserable and the part that adds more to the misery is that the company has loans from large reputable companies. 3AC plays a major role in bringing these companies down. The current market situation does not look good, and as the day goes on, a new company’s connection with 3AC and its misery related to it comes to light.
Only a few companies are trying to revive the market like FTX and Binance. The entire market is now dependent on these companies and the performance of these companies will certainly help the market to be revived.
