FinTelegram has been warning about the Blockchain.com crypto exchange for some time. The company delays payouts and seems to be under financial stress. It was already known that Blockchain.com lost a lot of money in the collapse of the crypto hedge fund Three Arrows Capital (3AC). CoinDesk reports today on the true extent that is frightening. Blockchain.com apparently lost $270 million. We recommend again that all Blockchain.com customers immediately withdraw their funds or stop depositing new funds.
“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, co-founder and CEO of Blockchain.com wrote in a letter to shareholders, reviewed by CoinDesk. Smith pointed out that 3AC has borrowed and repaid over $700 million worth of cryptocurrency over the last four years. Smith also emphasized that Blockchain.com “remains liquid, solvent and our customers will not be impacted,” in the letter dated June 24.
It begs the question of where Peter Smith and his Blockchain.com got the $700 million they borrowed from 3AC. What is their source of funds would be the question to their clients, right? These guys are ridiculous and for sure not fit and proper to run any financial business. The funds of the clients may not be it says the user agreement but exactly that we doubt. We doubt that Blockchain.com will recover from this loss anytime soon.
We have also already pointed out that Peter Smith did not mention the Three Arrows Capital problem with a single word in his written statement on Medium on June 15, 2022. He reassured the public and knowingly concealed the problems. That’s what we call intentional misleading, and it usually has criminal consequences.
