Blockchain.com is exposed to a high risk of losing approximately $270 million to the bankrupt crypto exchange Three Arrows Capital.
While Three Arrows Capital filed for Chapter 15 bankruptcy, the new development of Blockchain.com, losing the loan amount, came to light. 3AC took a major decision by declaring itself bankrupt in order to seek protection from all the United States’ creditors after experiencing heavy losses in the crypto market crash of 2022.
Peter Smith, the CEO of Blockchain.com, wrote a letter to their shareholders stating the insolvency of Three Arrows Capital, which would cause the company to lose $270 million.
SCOOP: Cryptocurrency exchange @blockchain stands to lose $270 million from lending to Three Arrows Capital, CEO @OneMorePeter told shareholders in a letter reviewed by CoinDesk.@IanAllison123 reportshttps://t.co/RxsCVH90xA
— CoinDesk (@CoinDesk) July 8, 2022
Who else has been affected by 3ACs’ bankruptcy?
The reports that came in earlier this week from Genesis Trading, an exchange that deals with all sorts of digital assets, indicated that they too had been affected by Three Arrows Capital’s situation. Still, they mitigated all of their losses as the hedge fund couldn’t meet one of the margin calls.
The GDP of almost all countries has seen exponential growth in the last few years, and the sudden experience of a recession in the current generation has taken a toll on their financial decisions.
As the Federal Reserve of the United States aggressively hiked up all the rates amidst recession fears, it has impacted the equity and cryptocurrency markets. Several companies have been affected by the “Winter Days” in the blockchain industry, including some big giants like Voyager Digital and Celsius Network.