Summary:
- Blockchain.com’s CEO has revealed that the company faces a $270 million loss on loans to the Three Arrows Capital hedge fund.
- However, he states that the company remains liquid and solvent, and its customer will not be affected by the loss.
Blockchain.com CEO, Peter Smith, has revealed that the crypto exchange faces a potential $270 million loss on loans it gave to the possibly bankrupt Three Arrows Capital hedge fund.
Mr. Smith told shareholders in a letter that ‘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.’ He reaffirmed that the company remained liquid and solved, and its customers need not worry as they would not be impacted.
He also informed shareholders that the hedge fund had previously borrowed and paid back over $700 million worth of digital assets in the last four years.
In late June, Blockchain.com and Deribit confirmed that they were creditors looking into liquidating Three Arrows Capital in the British Virgin Islands. Blockchain.com had also stated that it was cooperating with relevant authorities on ongoing investigations into Three Arrows Capital’s operations.
In a statement to Bloomberg, a Blockchain.com representative explained that they ‘[believed] Three Arrows Capital defrauded the crypto industry and [intended] to hold them accountable to the fullest extent of the law.’
Similarly, the team at TPS capital, which has been linked to an OTC trading desk operated by Three Arrows Capital, released a statement yesterday clarifying its relationship with the collapsed hedge fund.
The statement by TPS explained that the company is an independent firm operating as an OTC desk that provides market-making, trade facilitation, and block trading services to its clients. The team at TPS further explained that it is an independent legal entity and that Three Arrows Capital was a shareholder for a very brief period following TPS’ incorporation in December 2022.
The two entities parted ways in January 2021. However, Su Zhu and Kyle Davis have indirect equity interests in the company but do not have any direct control over the company’s day-to-day operations. In addition, TPS is run by a separate management team that is not involved with Three Arrows Capital in any way.
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments