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Blockchaincom: $270 million loss to 3AC

 


Blockchain.com is a traditional company in the still young crypto industry, which was founded in 2011. In addition to being able to create a wallet and browse the Bitcoin blockchain via a block explorer, customers can also purchase cryptocurrencies such as Bitcoin directly from their wallet.


As it became known on Friday, Blockchain.com had also lent large sums to Three Arrows Capital. Investors have now been informed that a loss of 270 million US dollars is imminent. The hedge fund went bankrupt and the rumor mill is already churning, because the two founders of 3AC are said to have defected and disappeared from Singapore.


While there is no confirmation of this yet, the money or cryptocurrencies that Blockchain.com lent to 3AC can safely be written off, because Three Arrows is in bankruptcy proceedings. According to several unanimous media reports, the management of Blockchain.com does not believe that the loan default could have a threatening impact on the business.


Authorities investigate 3AC

Three Arrows Capital should keep the industry and authorities busy for a while. For example, there is a suspicion of market manipulation and investigations have already been initiated in Singapore. Specifically, it is about the suspicion that 3AC made false statements about the total value of the assets managed by the hedge fund.


It was probably this misleading representation that opened the floodgates for 3AC, allowing the fund to borrow collectively billions of dollars from various sizes of industry. In the end, 3AC became a stumbling block for various companies. Including Voyager Digital, which had to apply for bankruptcy protection with a hole of 670 million US dollars and is thus heading for bankruptcy.


To all appearances, it was the collapse of LUNA and the stablecoin UST that initially got the ball rolling. Because Three Arrows lost around 200 million US dollars in the process and bet with the remaining capital that the market would recover. With each further sale, the hedge fund found itself in an increasingly hopeless situation. Why the situation was underestimated and no appropriate risk management pursued remains the subject of various speculations and theories.

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