Blockchain.com is the latest victim in the Three Arrows Capital (3AC) fallout as the exchange stands to lose up to $270 million based on the company’s latest shareholder letter. 3AC is currently undergoing liquidations in the British Virgin Islands and is being handled by partners from Teneo Restructuring, a New York-based financial advisory firm. 

CEO of Blockchain.com Peter Smith wrote to the company’s shareholders that with 3AC’s rapid decline, the default impact on Blockchain.com is around $270 million in Bitcoin, cryptocurrencies, and U.S. dollar loans.

3AC’s insolvency was the result of recent steep price declines in Bitcoin and cryptocurrencies along with poor risk management. Smith added that 3AC was able to pay off over $700 million in loans over the previous four years the companies were in business together. 

Smith also wanted to make it clear that Blockchain.com “remains liquid, solvent and our customers will not be impacted.”

An anonymous source familiar with Blockchain.com’s financial standing explains that the company is positioned to weather the losses of this loan. “We are not getting the sense there is any kind of stress on the organization,” the source said.

Last week, it was revealed that Blockchain.com and derivatives exchange Deribit were among the creditors pushing for 3AC to be liquidated. The 3AC liquidations and market volatility has impacted the operations of a number of other platforms within the space that include: Voyager Digital, BlockFi, Genesis, and Celsius.

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