Blockchain.com loses $ 270 million in 3AC Chaos
Important takeaways
- Blockchain.com has lost $ 270 million to Three Arrows Capital, according to a letter sent to shareholders two weeks ago.
- Nevertheless, the company remains “liquid” and “solvent,” the CEO said before assuring that customers would not be affected by the loss.
- Blockchain.com is among the entities that want to hold Three Arrows Capital “fully responsible” for “deceiving” the crypto industry.
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Three Arrows Capital owes $ 270 million to the crypto-lending platform Blockchain.com, although the CEO has insisted in a letter to shareholders that the company remain liquid and that customers will not be affected.
3AC “Cheating the crypto industry”
It seems that Blockchain.com has also lost money to Three Arrows Capital.
The company announced in a letter sent to its shareholders two weeks ago that Blockchain.com would suffer a loss of $ 270 million if the infamous crypto hedge fund breaches its obligations.
The company “remains liquid, solvent and our customers will not be affected,” Blockchain.com CEO Peter Smith wrote in the letter. He further elaborated that Three Arrows Capital had traded with the company for over $ 700 million in crypto and US dollars over the past four years.
Blockchain.com is a crypto trading platform that also offers lending and custody services to companies and institutional customers. Three Arrows Capital is a prominent cryptocurrency fund; its founders, Su Zhu and Kyle Davies, became known in the crypto area for their foresighted trading calls and for pushing the “superbike” theory, arguing that Bitcoin would never face another 80% decline.
The company was eradicated after the brutal market breakdown, and caused a liquidity crisis for their many “CeFi” counterparties, which are centralized companies that take advantage of the opportunities found in decentralized financial protocols (DeFi) for their customers. Celsius, BlockFiand Voyager is among the companies that have suffered heavy losses from Three Arrows Capital’s insolvency.
A court in the British Virgin Islands has ordered the liquidation of the crypto hedge fund, a move allegedly supported by Smith, who said that Three Arrows Capital had “cheated the crypto industry”. Smith stated that Blockchain.com intends to “hold them accountable to the full extent of the law.”
Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.
