Blockchain.com stands to lose $270 million.

By lending money to Three Arrows Capital, the leveraged hedge fund that is currently the subject of a liquidation order in the British Virgin Islands, cryptocurrency exchange Blockchain.com stands to lose $270 million.

Due to a combination of falling cryptocurrency prices, poor risk management, and many crypto lending businesses becoming exposed, Three Arrows Capital, which touted managing billions of dollars' worth of assets earlier this year, crumbled.

In the four years that Three Arrows has been a counterparty of Blockchain.com, Smith said that the company has borrowed and repaid more than $700 million in cryptocurrencies. In the letter dated June 24, Smith also highlighted that Blockchain.com "remains liquid, solvent and our clients will not be impacted."

One of the oldest startups in the cryptocurrency sector, Blockchain.com was established in 2011. It created one of the first web wallets and blockchain explorers. The Luxembourg-based company became the first cryptocurrency-related sponsor of the American National Football League's Dallas Cowboys this year.
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