Blockchain.com was among the creditors who pushed for the liquidation of collapsed crypto hedge fund Three Arrows Capital (3AC). We have reported several times that Blockchain.com delays withdrawals of its customers with bullshit excuses. Perhaps the cause is a liquidity problem due to the losses suffered with 3AC? Blockchain.com said that 3AC may have defrauded the crypto industry. They intend to hold them accountable. What about Blockchain.com accountability? Whose funds have been invested? The company has not yet disclosed details to its clients!
Blockchain.com said that it would fully cooperate with the investigations and claimed to be liquid and solvent while holding a strong financial position. Customers will remain unaffected, the exchange said but it looks quite different from the outside. Meanwhile, 3AC is seeking protection from creditors in the United States under Chapter 15 of the U.S. Bankruptcy Code (FinTelegram report here), which makes it hard to impossible for creditors to access its assets. Non U.S.-companies such as 3AC use Chapter 15 to block creditors who want to file lawsuits or tie up assets in the United States.
There is currently no comment from Blockchain.com on the extent of the losses and which funds were used in the process. Despite the company’s assurances, we doubt whether there are really enough funds to fulfill the customer repayments in view of the many complaints.
