Due to lending money to Three Arrows Capital (3AC), the hedge fund that is on the cusp of becoming insolvent, crypto exchange Blockchain.com is now at risk of losing $270 million. The money was originally lent to 3AC in both cryptocurrency and U.S. dollars.
Despite such monumental losses being at play, Blockchain.com’s CEO Peter Smith has insisted that the company ‘remains liquid, solvent and our customers will not be impacted’.
As expected, a sense of bad blood is boiling between the pair of companies, as Blockchain.com and its derivatives exchange Deribit are reported to be amongst 3AC’s creditors who were calling for its liquidation. This comes after Smith said that 3AC had “defrauded the crypto industry” and that the company intended “to hold them accountable to the fullest extent of the law”.
