Due to Three Arrows Capital's failure to repay loans as a result of its bankruptcy and liquidation, cryptocurrency exchange Blockchain.com may face a total loss of $270 million.
Earlier this month, the troubled cryptocurrency hedge firm Three Arrows Capital (3AC) filed for Chapter 15 bankruptcy in the United States in order to keep its assets in the nation.
Three Arrows Capital's problems were exacerbated by the failure of LUNA-UST, to which the company has considerable exposure. A British Virgin Islands court has ordered the liquidation of Three Arrows Capital.
In a letter to shareholders, Blockchain.com CEO Peter Smith stated, “Three Arrows is rapidly going insolvent, and the default impact is about $270 million in bitcoin and US dollar loans from Blockchain.com.”
He said that the corporation deceived bitcoin industry colleagues and sought legal counsel to defend its own interests and make them accountable to the maximum extent possible.
The company stated that Blockchain.com is operationally sound and that its users would be unaffected, remaining liquid and solvent.
Three Arrows has refunded more than $700 million in cryptocurrency.
According to a Bloomberg story from April, cryptocurrency exchange Blockchain.com is set to go public as soon as this year.
Genesis Capital, a digital asset lending organization, stated that when filing for bankruptcy with Three Arrows Capital, it will assume risks in order to lower the hedge fund's bad debt risk as much as feasible.
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