Will blockchain com lose $270 million from lending to three arrows capital?

Blockchain.com “remains liquid, solvent and our customers will not be impacted,” wrote CEO Peter Smith in a letter to shareholders. Cryptocurrency exchange Blockchain.com stands to lose $270 million from lending to Three Arrows Capital, the over-leveraged hedge fund now the subject to a liquidation order in the British Virgin Islands.

Is three arrows insolvent?

“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 ,” Peter Smith, Blockchain.com ’s CEO, wrote in a letter to shareholders, reviewed by CoinDesk.

Who owns three arrows?

The liquidation order brings down the curtain on one of crypto’s most famous hedge funds, founded in 2012 by Su Zhu and Kyle Davies, former Credit Suisse Group AG traders. Three Arrows’ assets under management were estimated to be about $10 billion in March, according to blockchain analytics firm Nansen.

Is three arrows capital investigating a crypto hedge fund?

Blockchain.com, a creditor of Three Arrows Capital, said it is cooperating with ongoing investigations into the troubled crypto hedge fund.