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Another crypto exchange faces huge loss due to exposure Three Arrows Capital

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Another cryptocurrency exchange is facing a $270 million loss on loans to Three Arrows Capital (3AC), the Singapore-based hedge fund that was the subject of a liquidation order in the British Virgin Islands recently. faces $270 million loss

The information in question was given by the CEO of himself, Peter Smith, in a letter to the shareholders of the company to which CoinDesk had access:

“Three Arrows is rapidly becoming insolvent and the default impact is around $270 million in cryptocurrency and US dollar loans from,” wrote Peter Smith.

According to Smith, Three Arrows has borrowed and repaid over $700 million worth of cryptocurrencies over the four years it has partnered with

In addition, he assured that the exchange “remains liquid and solvent” and that its customers “will not be impacted.”’s Smith told Bloomberg News that 3AC had defrauded the cryptocurrency industry. Furthermore, he stated that his company intended to hold 3AC accountable “to the fullest extent of the law”.

Understand the case of 3AC

Founded in 2012 by Su Zhu and Kyle Davies, Three Arrows Capital has grown into one of the largest cryptocurrency hedge funds in the world. However, the company was heavily impacted by the recent crypto market slump.

In the month of May, the fund suffered significant losses during the collapse of the Earth ecosystem (LUNA). This is because the fund invested massively in the native token LUNA, which ended up going to zero after the demise of the USD stablecoin land (UST). It is estimated that 3AC lost about $200 million after the project collapsed.

In mid-June 3AC suffered liquidations in the order of US$ 400 million, including by BlockFi, FTX and BitMEX., alongside derivatives exchange Deribit, was among the companies pushing for the liquidation of 3AC. At the end of June a court based in the British Virgin Islands ordered the liquidation of 3AC. Then, the company’s insolvency became the responsibility of the global consultancy Teneo Restructuring, based in New York.

A source told CoinDesk that despite the potential million-dollar loss, looks good to weather the losses. “We’re not realizing that there’s any kind of stress in the organization,” the source said. was founded in 2011 and is one of the oldest companies in the cryptocurrency industry. The startup developed one of the first blockchain explorers and one of the first browser wallets for the web.

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