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Blockchain.Com Faces Losing $270 Million Issued As Loan To 3AC

source-logo  cryptovibes.com 11 July 2022 18:10, UTC

Major crypto exchange Blockchain.com could be on the verge of losing $270 million over its loans to Three Arrows Capital (3AC).

Chief Executive Officer of Blockchain.com, Peter Smith, stated that Three Arrows Capital is increasingly becoming bankrupt and the company is still in default of $270 million to Blockchain.com.

Blockchain.Com Assures Customers Of Safety Of Funds

Earlier this year, Three Arrows Capital had billions of dollars in assets under management. However, a combination of poor risk management and plummeting crypto prices has affected such impressive holding. Several crypto lending businesses have become highly exposed, which has resulted to ripple effects across the industry.

Smith noted that Three Arrows has already borrowed $700 million worth of cryptocurrencies in four years, although this has been repaid. But the company has always been a counterparty of Blockchain.com, which could affect the company.

However, Smith assures customers that the crypto exchange will remain solvent and not be impacted by the issues 3AC is currently facing. He said customers’ funds are safe.

Blockchain Is Exploring Different Methods To Recover Its Funds

Last week derivatives exchange Deribit and Blockchain.com were reportedly among the creditors that wanted 3AC to go into liquidation. While Smith was addressing the issue, he stated that 3AC “defrauded the crypto industry” and Blockchain.com intends to hold it accountable to the fullest extent of the law. Smith added that the company is exploring several methods to get its funds back.

A close source familiar with the situation stated that Blockchain.com is fully funded and is not panicking over the default loan by 3AC. The source stated that the organization is not under any kind of stress or in a precarious situation because of the loan.

Luxemburg-based Blockchain.com was launched in 2011, which makes it one of the oldest startups in the Cryptocurrency era. It has also developed one of the earliest web browser wallets and one of the earliest blockchain explorers. The company has partnered with several companies as it strives to expand operations and increase crypto adoption. This year, the firm became the first crypto-based sponsor of the Dallas Cowboys of the U.S National Football League (NFL).

cryptovibes.com