- According to a letter sent to shareholders two weeks ago, Blockchain.com has lost $270 million to Three Arrows Capital.
- Yet the firm remains “liquid” and “solvent”, the CEO said, before assuring customers it would not be affected by the loss.
- Blockchain.com is number one among the entities that want to hold Three Arrows Capital “fully accountable” for “frauduling” the crypto industry.
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Three Arrows Capital is owed $270 million on crypto lending platform Blockchain.com, although the CEO has stressed in a letter to shareholders that the company remains liquid and customers will not be affected.
3AC “Dooked the Cryptocurrency Industry”
It appears that Blockchain.com has also lost money to Three Arrows Capital.
company announced A letter sent to its shareholders two weeks ago said that Blockchain.com would lose $270 million if the notorious crypto hedge fund defaulted on its obligations.
Blockchain.com CEO Peter Smith wrote in the letter that the company “remains liquid, solvent and our customers will not be affected.” He further elaborated that Three Arrows Capital had transacted over $700 million in crypto and US dollars with the firm over the past four years.
Blockchain.com is a crypto trading platform that also provides lending and custody services for businesses and institutional clients. Three Arrows Capital is a leading crypto hedge fund; Its founders, Su Zhu and Kyle Davis, became famous in the crypto space for their presentational trading calls and for advancing the “supercycle” theory, arguing that bitcoin will never face an 80% recession.
the firm was eliminated Following the brutal market downturn, creating a liquidity crisis for many of their “CEFI” counterparties, they are centralized companies that take advantage of the opportunities found in decentralized finance (DeFi) protocols for their clients. Celsius, BlockFiAnd Sailor Three Arrows Capital has been among the firms that have suffered heavy losses due to bankruptcy.
is in a court in the British Virgin Islands ordered The liquidation of the cryptocurrency hedge fund, a move reportedly backed by Smith, who said that Three Arrows Capital had “betrayed the crypto industry.” Smith said that Blockchain.com intended to “hold them accountable to the fullest extent of the law.”
Disclosure: At the time of writing, the author of this article owns ETH and several other cryptocurrencies.