- Crypto exchange Blockchain.com lost $270 million from Three Arrows Capital.
- Recently, 3AC failed to repay the loan of around $665M to Voyager Digital.
According to Peter Smith, the CEO of prominent cryptocurrency exchange Blockchain.com, the firm loses over $270 million on loans from the crypto hedge fund, Three Arrows Capital (3AC). In a letter written in June by Peter Smith to shareholders, he expressed that:
Three Arrows is rapidly becoming insolvent and the default impact is approximately $270 million worth of cryptocurrency and U.S. dollar loans from Blockchain.com. The firm remains liquid, solvent and our customers will not be impacted.
Trouble Continues for 3AC
During the past four years, Three Arrows Capital borrowed and repaid around $700 million in crypto. In a recent report, Peter Smith declared that the 3AC defrauded the cryptocurrency industry, and the firm is intended to hold them accountable to the fullest extent of the law. Reportedly, along with Blockchain.com, another crypto exchange platform named Deribit is also among the creditor, looking into the liquidation of the cryptocurrency hedge fund.
The Singapore-based lending crypto hedge platform Three Arrows Capital continuously witnessed difficulties due to the breakdown of the global crypto market. During the previous month, a British Virgin Islands court-ordered liquidation against the 3AC firm. Along with this, the crypto brokerage service, Voyager Digital issued a default notice against 3AC for failing to repay the loan of $350 million USDC and 15,250 Bitcoin (BTC).
Moreover, Three Arrows Capital suffered from heavy losses during the past months. In February, the company invested $200 million in LUNA tokens. But it is worthless since May, because of Terra’s money collapse.
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