Key Takeaways
Blockchain.com has misplaced $270 million to Three Arrows Capital, based on a letter despatched to shareholders two weeks in the past.
Nevertheless the agency stays “liquid” and “solvent,” the CEO stated earlier than assuring clients wouldn’t be impacted by the loss.
Blockchain.com numbers among the many entities wanting to carry Three Arrows Capital “fully accountable” for “defrauding” the crypto trade.
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Three Arrows Capital owes $270 million to crypto lending platform Blockchain.com, although the CEO has insisted in a letter to shareholders that the corporate stays liquid and clients wouldn’t be impacted.
3AC “Defrauded the Crypto Industry”
It seems Blockchain.com has additionally misplaced cash to Three Arrows Capital.
The agency introduced in a letter despatched to its shareholders two weeks in the past that Blockchain.com would undergo a $270 million loss ought to the infamous crypto hedge fund default on its obligations.
The firm “remains liquid, solvent and our customers will not be impacted,” Blockchain.com CEO Peter Smith wrote in the letter. He additional elaborated that Three Arrows Capital had transacted with the agency for over $700 million in crypto and U.S. {dollars} during the last 4 years.
Blockchain.com is a crypto buying and selling platform that additionally gives lending and custody providers for companies and institutional shoppers. Three Arrows Capital is a outstanding crypto hedge fund; its founders, Su Zhu and Kyle Davies, grew to become well-known in the crypto house for his or her prescient buying and selling calls and for pushing the “supercycle” concept, arguing that Bitcoin would by no means face one other 80% downturn.
The agency was worn out following the brutal market meltdown, inflicting a liquidity disaster for his or her many “CeFi” counterparties, that are centralized firms that leverage for his or her clients the alternatives discovered in decentralized finance (DeFi) protocols. Celsius, BlockFi, and Voyager are among the many companies having suffered heavy losses from Three Arrows Capital’s insolvency.
A courtroom in the British Virgin Islands has ordered the liquidation of the crypto hedge fund, a transfer reportedly supported by Smith, who stated Three Arrows Capital had “defrauded the crypto industry.” Smith said that Blockchain.com intends to “hold them accountable to the fullest extent of the law.”
Disclosure: At the time of writing, the creator of this piece owned ETH and several other different cryptocurrencies.
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