Blockchain.com loses $270Mn to 3AC

Cryptocurrency firm Blockchain.com has lost $270 million on its loans to crypto hedge fund Three Arrows Capital (3AC), days after 3AC filed for bankruptcy, seeking protection from creditors in the United States.

Blockchain.com CEO Peter Smith said that the firm remains liquid and solvent and its customers will not be impacted. He also pointed out that Three Arrows has borrowed and repaid over $700 million worth of cryptocurrency in the four years that the firm has been a counterparty of Blockchain.com.

About a week ago, Blockchain.com and derivatives exchange Deribit were reported to be among the creditors that pushed for the liquidation of Three Arrows. Smith said 3AC had “defrauded the crypto industry,” adding that this company intended “to hold them accountable to the fullest extent of the law.”

Blockchain.com is one of the longest-running startups in the cryptocurrency industry and developed one of the earliest blockchain explorers and one of the earliest web browser wallets. This year, the Luxembourg-based firm became the first crypto-related sponsor of the Dallas Cowboys of the National Football League in the U.S.