Crypto exchage Blockchain.com facing $270M loss in 3AC loan

Blockchain.com is one of the crypto companies that are likely to lose millions of dollars as a result of the collapse of Three Arrows Capital, a crypto hedge fund.

Report by CoinDesk Among the oldest in the industry, the crypto exchange says $ 270 million could be drained into the drain for 3AC liquidation.

Cryptographic companies collapse in a large-scale transmission

Three Arrows Capital is one of several crypto companies involved in the suffering of a large-scale transmission, catalyzed by explicit financial irresponsibility. The collapse of Terra in May seems to have been just the tip of the iceberg.

With clearing and bankruptcy filings ubiquitous, the market may not yet have the full impact of what happened to companies such as Celsius Network, Voyager Digital, BlockFi and Vauld. Completely retreat.

Regarding Blockchain.com, CoinDesk quoted a shareholder letter issued by the company on Friday, citing that 3AC’s bankruptcy risk could open a $ 270 million hole in the exchange’s balance sheet. According to the report, these are the feelings of Blockchain.com CEO Peter Smith.

At the beginning of June, Smith commented on the “historical washout” of cryptocurrencies, noting that “risk capital” could continue to be crushed in this space.

1 / This Week’s Question: What’s happening in the crypto market right now? Answer: Leverage of the entire space and historical flushing of risk capital.

Peter Smith (@OneMorePeter) June 24, 2022

On Thursday, Galaxy Digital CEO Mike Novogratz said events in the crypto industry, especially around a collapsing company, could be subject to investigation and prosecution.