Blockchain.com is one of the cryptocurrency companies that is likely to lose millions of dollars as a result of the collapse of the crypto hedge fund Three Arrows Capital.
a report by coindesk states that the crypto exchange, one of the oldest in the industry, could see $270 million flowing down the drain due to the liquidation of 3AC.
Crypto Firms Collapse Amidst Mass Infections
Three Arrows Capital is one of several crypto firms that has been hit by a massive contagion, catalyzed by financial irresponsibility. Terra’s fall in May appears to have been just the tip of the iceberg.
With liquidations and bankruptcy filings in full swing, the market is likely to see the full impact of what has happened so far on companies such as Celsius Network, Voyager Digital, BlockFi and Wold. Something else would probably have bitten the dust by the time of the tide. goes away completely.
To Blockchain.com, CoinDesk cited a shareholder letter published by the company on Friday saying that 3AC’s insolvency risk has eroded $270 million in the exchange’s balance sheet. According to the report, these are the sentiments of Peter Smith, CEO of Blockchain.com.
In early June, Smith commented on a “historic wash out” in crypto, noting that the space was likely to see a continued crushing of “high-risk capital”.
1/Question of the Week: What’s Happening in the Crypto Markets Right Now? Answer: A historic wash out of leverage and risk capital across the space.
— Peter Smith (@OneMorePeter) 24 June 2022
On Thursday, Galaxy Digital CEO Mike Novogratz said that events in the crypto industry, particularly around collapsing companies, could be subject to investigation and prosecution.