Blockchain.com has lost $270 million due to the bankruptcy of Three Arrows Capital, its managers confirmed in a letter sent to shareholders.

Cryptocurrency exchange and wallet provider Blockchain.com is losing USD 270 million that it previously lent to hedge fund Three Arrows Capital (3AC).

The company “remains liquid, solvent and our customers will not be affected,” Blockchain.com CEO Peter Smith wrote in a letter he recently sent to shareholders. This after 3AC’s founders declared the company bankrupt, according to CoinDesk publication.

The hedge fund would have collapsed due to the fall in cryptocurrency market prices, combined with poor risk management, leaving several companies in the sector exposed, as shown by CriptoNoticias in one of its notes.

Blockchain.com also provides lending and custody services to financial institutions. Previously, it along with Deribit and other companies demanded to liquidate Three Arrows Capital pointing out before a Virgin Islands Court that the hedge fund had “defrauded the cryptocurrency industry,” as reported by Bloomberg.

Deribit, whose parent company counts Three Arrows as a shareholder, has said on Twitter that it remains financially healthy despite having net debt that it considers potentially distressed.

But Three Arrows’ financial troubles have also affected other companies such as cryptocurrency lender Voyager Digital Ltd, which last week filed for bankruptcy and made a decision to freeze its customers’ assets.

Three Arrows’ assets under management were estimated at around USD 10 billion in March, according to blockchain analytics firm Nansen. A spokesperson for the fund told the Wall Street Journal earlier this month that it had approximately USD 3 billion in assets under management in April before the market collapse.

In any case, what companies related to 3AC are asking for is that all of the fund’s assets be liquidated immediately, so that payment obligations can be met and thus avoid liquidity issues from other platforms.

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