HomeNewsBlockchain.com Loses $270M in 3AC Chaos

Blockchain.com Loses $270M in 3AC Chaos

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Blockchain.com Loses $270M in 3AC Chaos
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CEO Peter Smith claimed the firm remained in correct health and that prospects would no longer be impacted by the loss.

Key Takeaways

  • Blockchain.com has lost $270 million to Three Arrows Capital, in step with a letter sent to shareholders two weeks ago.
  • Nonetheless, the firm remains “liquid” and “solvent,” the CEO mentioned sooner than assuring prospects would no longer be impacted by the loss.
  • Blockchain.com numbers among the entities interested to aid Three Arrows Capital “fully responsible” for “defrauding” the crypto industry.

Three Arrows Capital owes $270 million to crypto lending platform Blockchain.com, though the CEO has insisted in a letter to shareholders that the firm remains liquid and prospects would no longer be impacted.

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3AC “Defrauded the Crypto Industry”

It appears Blockchain.com has also lost money to Three Arrows Capital.

The firm presented in a letter sent to its shareholders two weeks ago that Blockchain.com would endure a $270 million loss and might maybe well maybe also be indifferent to the infamous crypto hedge fund default on its obligations.

The firm “remains liquid, solvent and our prospects are maybe no longer impacted,” Blockchain.com CEO Peter Smith wrote in the letter. He additional elaborated that Three Arrows Capital had transacted with the firm for over $700 million in crypto and U.S. greenbacks over the final four years.

Blockchain.com is a crypto trading platform that also gives lending and custody products and services to agencies and institutional clients. Three Arrows Capital is a famed crypto hedge fund; its founders, Su Zhu and Kyle Davies changed into famed in the crypto pickle for their prescient trading calls and for pushing the “supercycle” principle, arguing that Bitcoin would under no circumstances face one other 80% downturn.

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The firm changed into wiped out following the brutal market meltdown, causing a liquidity disaster for their many “CeFi” counterparties, which are centralized companies that leverage for their prospects the opportunities uncover in decentralized finance (DeFi) protocols. Celsius, BlockFi, and Voyager are among the companies that have suffered heavy losses from Three Arrows Capital’s insolvency.

A court docket in the British Virgin Islands has ordered the liquidation of the crypto hedge fund, a transfer reportedly supported by Smith, who mentioned Three Arrows Capital had “defrauded the crypto industry.” Smith mentioned that Blockchain.com intends to “aid them responsible to the fullest extent of the legislation.”

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