Blockchain.com faces $270 million hit on loans to bankrupt Three Arrows – CoinDesk


Cryptocurrency exchange Blockchain.com could lose $270 million from lending to hedge fund Three Arrows Capital (3AC), which filed for bankruptcy earlier this month, CoinDesk reported on Friday.

“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 report said, quoting chief executive officer (CEO) Peter Smith’s letter to shareholders.

Blockchain.com declined to comment when contacted by Reuters and 3AC did not immediately respond.

3AC has sought protection from creditors under the US Bankruptcy Code, which allows foreign debtors to shield US assets.

Aggressive rate hikes by the US Federal Reserve and recession fears have led to a turmoil in equities and sparked a selloff in cryptocurrencies. The crypto winter has hit several companies in the sector including lending platform Celsius Network and Voyager Digital.

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