A Cryptocurrency exchange Platform, Blockchain.com may lose the sum of $270 million it borrowed from the now embattled Crypto hedge fund, Three Arrows Capital (3AC).
Reports indicate that while 3AC had been able to pay up its debts owed the company within the past four years, the ongoing crypto winter and the collapse of the Terra ecosystem alongside its native tokens had put the firm in a difficult situation.
This has forced creditors to demand the liquidation of the firm, a request which was granted by a British Virginia court last month.
“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,” a letter addressed to stakeholders by Blockchain.com’s Chief Executive Officer Peter Smith said.
“Blockchain.com “remains liquid, solvent and our customers will not be impacted,” the letter said.
Recall that 3AC had filed for Chapter 15 bankruptcy, which supports it with protection from creditors in the United States.
Before that, 3AC lost about $200 million to the collapse of algorithmic stablecoin UST destabilized and plunged in value in May.
Shortly after, partners from Teneo in the British Virgin Islands were lined up to manage the bankruptcy of the Singapore-based business.
Blockchain.com had created one of the first web wallets and blockchain explorers.